BP PLC

Adjusted EBITDA is a non-IFRS measure presented for bp's operating

segments and the group. Adjusted EBITDA for bp's operating segments is

defined as replacement cost (RC) profit before interest and tax, excluding

net adjusting items before interest and tax, and adding back depreciation,

depletion and amortization and exploration write-offs (net of adjusting

items). Adjusted EBITDA by business is a further analysis of adjusted

EBITDA for the customers & products businesses. bp believes it is helpful

to disclose adjusted EBITDA by operating segment and by business

because it reflects how the segments measure underlying business

delivery. The nearest equivalent measure on an IFRS basis for the segment

is RC profit or loss before interest and tax, which is bp's measure of profit

or loss that is required to be disclosed for each operating segment under

IFRS. A reconciliation to IFRS information is provided on pages 327 and

Adjusted EBITDA for the group 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 adding back depreciation, depletion and amortization (pre-tax) and

exploration expenditure written-off (net of adjusting items, pre-tax). The

nearest equivalent measure on an IFRS basis for the group is profit or loss

for the period. A reconciliation to IFRS information is provided onpage 362.