Your current location is:{Current column} >>Text
BP boosts buybacks on soaring energy prices after costly Russia exit By Reuters
{Current column}92961People have watched
Introduction© Reuters. FILE PHOTO: Signage is seen for BP (British Petroleum) at a service station near Brighton ...

By Ron Bousso and Shadia Nasralla
LONDON (Reuters) -BP recorded its biggest quarterly loss after writing down $24 billion to exit its Russia businesses but a strong operational performance on the back of rocketing oil and gas prices helped the British energy firm step up share buybacks.
BP (NYSE:BP) shares were up 2.5% by 0925 GMT in London trading, outperforming rivals, after the company reported its strongest operational performance since 2008.
Soaring oil and gas prices in the wake of the Russian invasion of Ukraine on Feb. 24 helped offset losses BP incurred from abruptly abandoning its shareholdings in Russia, including its 19.75% stake in oil giant Rosneft.
The non-cash writedown of its stakes in Rosneft and two other joint ventures pushed BP into a headline loss of $20.4 billion in the quarter, its biggest recorded. But the charge was slightly lower than BP's initial estimates of $25 billion.
BP's underlying replacement cost profit, the company's definition of net earnings, reached $6.2 billion in the first quarter, the strongest since 2008 and far exceeding analysts' expectations for a $4.49 billion profit.
The 2022 first quarter performance was driven by what BP said was an "exceptional" performance in its oil and gas trading division. Chief Financial Officer Murray Auchincloss said volatility in oil and gas prices was most company had seen.
BP, whose shares up 7% since February, did not make any money from Rosneft in the quarter.
The company, which also halted trading Russian oil, said the exit from Russia, which had contributed 3% of the company's cash flow last year, would not affect its plan to shift away from oil and gas towards renewables.
The exit "has not changed our strategy, our financial frame, or our expectations for shareholder distributions," Chief Executive Bernard Looney said.
Global refining margins soared in recent months as economies recovered from the COVID-19 pandemic and Russian oil started to vanish from Europe, which heavily relies on Russian refined products like diesel.
BP's refined oil products unit made a profit of $1.6 billion in the first three months, compared with a loss of $26 million in the previous quarter and a $2 million loss a year ago.
BUYBACK BOOST
BP rivals including Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and TotalEnergies all saw a sharp rise in revenue in the quarter, also lifted by strong performances of their trading divisions, allowing them to boost shareholder returns.
BP said it would increase its quarterly share repurchases to $2.5 billion before the end of the second quarter after its surplus cash flow rose to more than $4 billion.
BP said in February it would accelerate its share buybacks to $1.5 billion per quarter from $1.25 billion.
BP previously said it would repurchase $4 billion a year at oil prices of $60 per barrel, well below the current price of benchmark Brent, which was about $107 on Tuesday.
The company maintained its dividend at 5.46 cents per share.
BP's net debt declined sharply to $27.5 billion from $30.6 billion at the end of 2021.
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!
Tags:
Related articles
Dollar hobbled by dovish Powell, debt ceiling setback By Reuters
{Current column}By Kevin BucklandTOKYO (Reuters) - The dollar extended its decline versus the yen and euro on Monday ...
Read moreTesla's German gigafactory could get power again on Monday By Reuters
{Current column}By Christoph SteitzFRANKFURT (Reuters) -Tesla's German gigafactory near Berlin could be supplied wit ...
Read moreJapan Q4 GDP revised up to slight expansion, economy avoids recession By Reuters
{Current column}By Satoshi SugiyamaTOKYO (Reuters) -Japan's economy avoided a technical recession, revised governmen ...
Read more
Popular Articles
- Japan outshines Asian stocks on tech strength, Chinese markets lag By
- Ukrainian drones attack refinery, target Moscow, disrupt power, Russia says By Reuters
- Futures ease as focus turns to inflation data By Reuters
- Tycoon Deripaska says Western firms shouldn't be pressured to sell Russian assets By Reuters
- 5 Huge Analyst Calls: Meta's Future Looking Brighter; Gap Sheds a Sell Rating
- North Korea fires ballistic missiles as Blinken visits Seoul By Reuters
Latest articles
-
5 Reasons Why May Will Be a Month to Remember
-
US Dollar Index Above Critical Support Ahead of CPI: How to Trade USD/JPY, EUR/USD
-
Micron delivers upbeat guidance after swinging to surprise profit in Q2 By
-
Dollar just higher ahead of payrolls; euro hands back some gains By
-
U.S. stocks mixed after Walmart beats but debt ceiling worries remain By
-
Is Ciena Corp the next hot AI Stock to buy? By