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 2025, 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, hydrogen and Archaea Energy business.

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, B2B, midstream and bp bioenergy. It also comprises our products businesses which include refining and oil trading.

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

Change in segmentation

For 2025, our Archaea Energy business has moved from the customers & products segment to the gas & low carbon energy segment. The change

in segmentation is consistent with a change in the way that resources are allocated, and performance is assessed by the chief operating decision

maker, who for bp is the group chief executive.

Comparative information for 2024 and 2023 has been restated where material to reflect the changes in reportable segments.

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

lossesa. 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 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.

a See explanation of inventory holding gains and losses on page 185.

b Includes additions to property, plant and equipment; goodwill; intangible assets; investments in joint ventures; and investments in associates.

Financial statements

a Restated for material items to reflect the move of our Archaea Energy business from the customers & products segment to the gas & low carbon energy segment.

b See explanation of inventory holding gains and losses on page 185.

c Includes additions to property, plant and equipment; goodwill; intangible assets; investments in joint ventures; and investments in associates.

a Restated for material items to reflect the move of our Archaea Energy business from the customers & products segment to the gas & low carbon energy segment.

b See explanation of inventory holding gains and losses on page 185.

c Includes additions to property, plant and equipment; goodwill; intangible assets; investments in joint ventures; and investments in associates.

a Non-US region includes UK$28,714 million

b Non-US region includes UK$21,529 million

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

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

Financial statements

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

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