BP PLC

5. Segmental analysis

The group’s organizational structure reflects the various activities in which bp is engaged as well as how performance and resource allocation is evaluated

by the chief operating decision maker. At 31 December 2024, bp hasthree reportable segments: Gas & low carbon energy, Oil production & operations, and

Customers & products. Each are managed separately, with decisions taken for the segment as a whole, and represent a single operating segment that

does not result from aggregating two or more segments.

Gas & low carbon energy comprises regions with upstream businesses that predominantly produce natural gas, gas marketing and trading activities and

the group's solar, wind and hydrogen businesses.

Oil production & operations comprises regions with upstream activities that predominantly produce crude oil.

Customers & products comprises the group’s customer-focused businesses, which includes convenience and retail fuels, EV charging, as well as Castrol,

aviation and B2B and midstream. It also includes our products businesses, refining & oil trading, as well as our bioenergya businesses.

Other businesses and corporate also comprises the group’s shipping and treasury functions, and corporate activities worldwide.

The accounting policies of the operating segments are the same as the group’s accounting policies described in Note 1. However, IFRS requires that the

measure of profit or loss disclosed for each operating segment is the measure that is provided regularly to the chief operating decision maker for the

purposes of performance assessment and resource allocation. For bp, this measure of profit or loss is replacement cost profit or loss before interest and

tax which reflects the replacement cost of supplies by excluding from profit or loss before interest and tax inventory holding gains and lossesb.

Replacement cost profit or loss before interest and tax for the group is not a recognized measure under IFRS.

Sales between segments are made at prices that approximate market prices, taking into account the volumes involved. Segment revenues and segment

results include transactions between business segments. These transactions and any unrealized profits and losses are eliminated on consolidation, unless

unrealized losses provide evidence of an impairment of the asset transferred. Sales to external customers by region are based on the location of the group

subsidiary which made the sale. The UK region includes the UK-based international activities of customers & products.

All surpluses and deficits recognized on the group balance sheet in respect of pension and other post-employment benefit plans are allocated to Other

businesses and corporate. However, the periodic expense relating to these plans is allocated to the operating segments based upon the business in which

the employees work.

Certain financial information is provided separately for the US as this is an individually material country for bp, and for the UK as this is bp’s country of

domicile.

a In February 2025 bp announced its intention to move its biogas business to the gas & low carbon energy segment.

b Inventory holding gains and losses represent:

•the difference between the cost of sales calculated using the replacement cost of inventory and the cost of sales calculated on the first-in first-out (FIFO) method after adjusting for any changes in

provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use for IFRS reporting of inventories other than for trading inventories, the cost of

inventory charged to the income statement is based on its historical cost of purchase or manufacture, rather than its replacement cost. In volatile energy markets, this can have a significant distorting

effect on reported income. The amounts disclosed as inventory holding gains and losses represent the difference between the charge to the income statement for inventory on a FIFO basis (after

adjusting for any related movements in net realizable value provisions) and the charge that would have arisen based on the replacement cost of inventory. For this purpose, the replacement cost of

inventory is calculated using data from each operation’s production and manufacturing system, either on a monthly basis, or separately for each transaction where the system allows this approach.

•an adjustment relating to certain trading inventories that are not price risk managed which relate to a minimum inventory volume that is required to be held to maintain underlying business activities. This

adjustment represents the movement in fair value of the inventories due to prices, on a grade-by-grade basis, during the period. This is calculated from each operation’s inventory management system on

a monthly basis using the discrete monthly movement in market prices for these inventories.

The amounts disclosed are not separately reflected in the financial statements as a gain or loss. No adjustment is made in respect of the cost of inventories held as part of a

trading position and certain other temporary inventory positions that are price risk-managed.

Financial statements

a Non-US region includes UK$24,577 million

b Non-US region includes UK$25,354 million

a Non-US region includes UK$39,975 million.

b Non-US region includes UK$23,949 million.

Financial statements

a Non-US region includes UK$36,541 million.

b Non-US region includes UK$24,813 million.