The Financing of BP PLC

BP plc, is one of the world’s largest energy companies and makes up about 5% of the FTSE-100. To finance the day to day operations, apart from oil sales, it has a debt programme across various currencies and markets to raise cash.

From reading the annual report one can get some very useful information. [http://www.bp.com/en/global/corporate/investors/annual-reporting.html]

It’s total debt is US$48,192 million = $48 Billion = £29.2 Billion.

This is split across bond issues that are fixed rate and floating rate.

Fixed Rate = US$17, 016 Million = £10.31 Billion

Billion Floating Rate = US$ 31,176 Million = £18.90 Billion

Total Debt: £29.21 Billion.

This debt is spread over multiple bonds, with varying maturities.

But let’s keep things in context, the total revenue for BP in 2012 was £240,238 million = £240 Billion. Thus the debt of BP is less than 13% of annual revenue, thus the bond holders of BP, are holding a very safe investment.

BP: Beyond Petroleum.

 

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