Bumper first quarter net profit, massive loss on Russia

BP has raised further returns for shareholders after net profit soared to more than a decade high.

Chris J. Radcliffe | Bloomberg | Getty Images

PP On Tuesday, the bumper boosted first-quarter profits and share purchases, despite causing huge losses after Russia-controlled oil company Rosneft lost nearly 20% of its stake.

The oil and gas companies’ first-quarter base conversion profits were used as a proxy for net profit, which reached $ 6.2 billion, its highest level in more than a decade.

Compared with a profit of $ 4.1 billion Fourth quarter And $ 2.6 billion First quarter 2021. According to Refinitiv, analysts expect BP’s first-quarter profit to be $ 4.5 billion.

The oil and gas company announced it would buy a further $ 2.5 billion in shares.

However, BP reported a cap loss of $ 20.4 billion for the quarter. These include $ 24 billion and $ 1.5 billion in pre-tax payments related to the withdrawal of Rosneft shares in response to Moscow’s invasion of Ukraine.

“We made the decision to leave Russia within 96 hours of the invasion, and today you see the financial implications of that decision,” BP CEO Bernard Looney told CNBC’s Squawk Box Europe on Tuesday.

Looney said business had a “very good” start to the year and net debt – falling to $ 27.5 billion – fell in the eighth quarter.

“Overall, in a basic sense, a good quarter for the company,” he added.

When asked to provide further details on how the company plans to expel itself from Russia, Looney replied: “We were very, very clear. We are announcing our intention to leave the country. We made that decision very quickly, as I said. We do not intend to comment on it this morning. “

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The first quarter results come as the EU prepares a sixth set of sanctions against Russia; The federation is divided over how to end Russia’s dependence on energy supplies.

Meanwhile, UK oil and gas majors are facing the possibility of a potential windfall tax, which could help fund the national package of support for families on revolving energy bills.

Britain’s Finance Minister Rishi Sunak is said to have opened the door to a potential tax on oil and gas suppliers after repeatedly rejecting the policy, citing fears that it could encourage investment.

Oil prices are hovering above $ 100 a barrel after reaching multi-year highs earlier this year.

International standard Brent Crude futures traded at $ 106.95 during morning trading in London, down 0.6% during the session. West Texas Intermediate The future was $ 104.62. About 0.5% less.

Shares of BP, listed in London, rose 2% after the opening hour. The company’s share price has risen more than 18% year-on-year.

BP announced a massive increase in net profit for the full year 2021, the highest in eight years. Global oil demand increased again last year as petrol and diesel consumption increased as consumers resumed their journey and business operations recovered amid the corona virus epidemic.

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