BP Posts Strong Profit Despite Earnings Loss

BP Posts Strong Profit Despite Earnings Loss

BP (NYSE: BP) reported disappointing first-quarter earnings on Tuesday and despite the loss, it boosted share buybacks after ridding itself of its almost 20% stake in Russian oil company Rosneft. The company ultimately reported a big jump in profit for the quarter.

The British oil and gas company reported earnings of USD0.32 per share, compared to the expected USD1.37 a share. Meanwhile, revenue amounted to USD49.26 Billion, lower than analysts anticipated USD53.20 Billion. Nevertheless, it revealed that its underlying profit has surged to USD6.2 Billion from the USD2.6 Billion p0rofit it had reported for the same period last year.

“In a quarter dominated by the tragic events in Ukraine and volatility in energy markets, bp’s focus has been on supplying the reliable energy our customers need. Our decision in February to exit our shareholding in Rosneft resulted in the material non-cash charges and headline loss we reported today. But it has not changed our strategy, our financial frame, or our expectations for shareholder distributions. Importantly bp continues to perform and step-by-step we are making progress executing our IEC strategy – producing resilient hydrocarbons to provide energy security while investing with discipline in the energy transition.” CEO Bernard Looney said in a statement.

Oil prices have risen almost 40% since the start of 2022, with prices for natural gas also surging. The increases are primarily due to fears of global supply chain issues amid Russia’s invasion of Ukraine.

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

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!