Stock Analysis on Net
Stock Analysis on Net

BP PLC (NYSE:BP)

This company has been moved to the archive! The financial data has not been updated since March 3, 2015.

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

BP PLC, adjustment to profit (loss) for the year attributable to BP shareholders

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Profit (loss) for the year attributable to BP shareholders (as reported) 3,780 23,451 11,582 25,700 (3,719)
Add: Available-for-sale investments marked to market (1) (172) 306 (71) (191)
Less: Available-for-sale investments reclassified to the income statement 1 (523) (1) (3) (150)
Profit (loss) for the year attributable to BP shareholders (adjusted) 3,780 22,756 11,887 25,626 (4,060)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

BP PLC, adjusted profitability ratios

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Net Profit Margin
Reported net profit margin 1.07% 6.19% 3.08% 6.84% -1.25%
Adjusted net profit margin 1.07% 6.00% 3.16% 6.82% -1.37%
Return on Equity (ROE)
Reported ROE 3.39% 18.14% 9.78% 23.06% -3.92%
Adjusted ROE 3.39% 17.60% 10.04% 22.99% -4.27%
Return on Assets (ROA)
Reported ROA 1.33% 7.67% 3.86% 8.77% -1.37%
Adjusted ROA 1.33% 7.44% 3.96% 8.74% -1.49%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. BP PLC adjusted net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. BP PLC adjusted ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. BP PLC adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

BP PLC, Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Profit (loss) for the year attributable to BP shareholders 3,780 23,451 11,582 25,700 (3,719)
Sales and other operating revenues 353,568 379,136 375,580 375,517 297,107
Profitability Ratio
Net profit margin1 1.07% 6.19% 3.08% 6.84% -1.25%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders 3,780 22,756 11,887 25,626 (4,060)
Sales and other operating revenues 353,568 379,136 375,580 375,517 297,107
Profitability Ratio
Adjusted net profit margin2 1.07% 6.00% 3.16% 6.82% -1.37%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Net profit margin = 100 × Profit (loss) for the year attributable to BP shareholders ÷ Sales and other operating revenues
= 100 × 3,780 ÷ 353,568 = 1.07%

2 Adjusted net profit margin = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Sales and other operating revenues
= 100 × 3,780 ÷ 353,568 = 1.07%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. BP PLC adjusted net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Profit (loss) for the year attributable to BP shareholders 3,780 23,451 11,582 25,700 (3,719)
Total BP shareholders’ equity 111,441 129,302 118,414 111,465 94,987
Profitability Ratio
ROE1 3.39% 18.14% 9.78% 23.06% -3.92%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders 3,780 22,756 11,887 25,626 (4,060)
Total BP shareholders’ equity 111,441 129,302 118,414 111,465 94,987
Profitability Ratio
Adjusted ROE2 3.39% 17.60% 10.04% 22.99% -4.27%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 ROE = 100 × Profit (loss) for the year attributable to BP shareholders ÷ Total BP shareholders’ equity
= 100 × 3,780 ÷ 111,441 = 3.39%

2 Adjusted ROE = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Total BP shareholders’ equity
= 100 × 3,780 ÷ 111,441 = 3.39%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. BP PLC adjusted ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Profit (loss) for the year attributable to BP shareholders 3,780 23,451 11,582 25,700 (3,719)
Total assets 284,305 305,690 300,193 293,068 272,262
Profitability Ratio
ROA1 1.33% 7.67% 3.86% 8.77% -1.37%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders 3,780 22,756 11,887 25,626 (4,060)
Total assets 284,305 305,690 300,193 293,068 272,262
Profitability Ratio
Adjusted ROA2 1.33% 7.44% 3.96% 8.74% -1.49%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 ROA = 100 × Profit (loss) for the year attributable to BP shareholders ÷ Total assets
= 100 × 3,780 ÷ 284,305 = 1.33%

2 Adjusted ROA = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Total assets
= 100 × 3,780 ÷ 284,305 = 1.33%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. BP PLC adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.