BP PLC

Adjusted EBIDA is a non-IFRS measure and is defined as profit or loss for

the period, adjusting for finance costs and net finance (income) or expense

relating to pensions and other post-employment benefits and taxation,

inventory holding gains or losses before tax, net adjusting items« before

interest and tax, and taxation on an underlying RC basis, and adding back

depreciation, depletion and amortization (pre-tax) and exploration

expenditure written-off (net of adjusting items, pre-tax). bp believes that

adjusted EBIDA is a useful measure for investors because it is a measure

closely tracked by management to evaluate bp’s operating performance

and to make financial, strategic and operating decisions and because it

may help investors to understand and evaluate, in the same manner as

management, the underlying trends in bp’s operational performance on a

comparable basis, period on period. The nearest equivalent measure on an

IFRS basis is profit or loss for the period. A reconciliation of profit or loss

for the period to adjusted EBIDA is provided onpage 361.