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 onpages 350 and 388.

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