Exhibit 7
Computation of ratio of earnings to fixed charges (unaudited)
$ million, except ratios | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Earnings available for fixed charges: | ||||||||||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for income or loss from joint ventures and associates(a)(b) | (4,255 | ) | (11,382 | ) | 1,578 | 27,032 | 14,196 | |||||||||||||
Fixed charges | 2,704 | 2,689 | 2,924 | 3,021 | 2,971 | |||||||||||||||
Amortization of capitalized interest | 186 | 298 | 327 | 226 | 145 | |||||||||||||||
Distributed income of joint ventures and associates | 1,105 | 1,614 | 1,911 | 1,391 | 1,763 | |||||||||||||||
Interest capitalized | (244 | ) | (179 | ) | (185 | ) | (238 | ) | (390 | ) | ||||||||||
Preference dividend requirements, gross of tax(c) | — | (2 | ) | (2 | ) | (2 | ) | (3 | ) | |||||||||||
Income of non-controlling interests not inccurring fixed charges | (14 | ) | (25 | ) | (2 | ) | — | — | ||||||||||||
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Total earnings available for fixed charges | (518 | ) | (6,987 | ) | 6,551 | 31,430 | 18,682 | |||||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expensed | 977 | 886 | 840 | 844 | 844 | |||||||||||||||
Interest capitalized | 244 | 179 | 185 | 238 | 390 | |||||||||||||||
Rental expense representative of interest | 1,483 | 1,622 | 1,897 | 1,937 | 1,734 | |||||||||||||||
Preference dividend requirements, gross of tax(c) | — | 2 | 2 | 2 | 3 | |||||||||||||||
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Total fixed charges | 2,704 | 2,689 | 2,924 | 3,021 | 2,971 | |||||||||||||||
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Ratio of earnings to fixed charges | — | — | 2.2 | 10.4 | 6.3 | |||||||||||||||
Deficiency of earnings to fixed charges | (3,222 | ) | (9,676 | ) | — | — | — |
(a) | 2016 includes a pre-tax charge of $7,134 million (2015 $11,956 million pre-tax charge, 2014 $819 million pre-tax charge, 2013 $469 million pre-tax charge and 2012 $5,014 million pre-tax charge) relating to the Gulf of Mexico oil spill. |
(b) | 2012 includes $709 million of dividends received from TNK-BP. |
(c) | Preference dividend requirements are determined by grossing up using the group’s effective tax rate, except in periods when the group’s effective tax rate exceeds 100%, in which case zero is disclosed. |
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