Despite the big leap in sales
BP loses billions in the first quarter
05/03/2022, 12:01 p.m
The impressive increase in sales in the first quarter of the year is countered by even more impressive write-downs at the energy group BP. The British are expensive for their stake in the Russian oil producer Rosneft. The stock exchange takes the enormous losses calmly.
The British energy giant BP was able to post a jump in sales thanks to rising oil and gas prices – and still suffered a loss of billions in the first quarter of the year. The group posted a sharp minus of 20.4 billion dollars (around 19.4 billion euros), as BP announced. The reason for this is that BP sold its stake in the Russian Rosneft group as a result of the Russian attack on Ukraine.
BP had a stake of almost 20 percent in the Russian oil company and announced at the end of February that it would sell its stake in Rosneft – write-downs of up to $25 billion could result, BP said at the time. According to current information, the group booked a pre-tax charge of $25.5 billion as a result of the break with Rosneft. The decision led to “significant” non-cash charges, said CEO Bernard Looney. In the first quarter of 2021, BP had posted net income of $4.7 billion.
The losses related to the Russian exit also outweighed the benefit to BP from rising energy prices. Revenue for BP increased 40 percent year over year to $51 billion in the first quarter.
Looney said the quarter was “marked by the tragic events in Ukraine and volatility in energy markets.” BP has focused on “supplying our customers with the reliable energy they need”. Despite the massive loss in the first quarter, BP shares initially rose and rose by around two percent in the morning.