British oil and gas giant BP posted a group net profit of more than $8 billion in the first quarter, compared with a record loss a year earlier due to the decision to end its operations in Russia. The loss then stood at 20.4 billion dollars.
Excluding one-off items, adjusted profit, a benchmark measure for both the company and analysts, beat market expectations by $5.0 billion in the first quarter from $6.2 billion a year earlier, due to falling hydrocarbon prices , which had been accentuated after Moscow’s invasion of Ukraine.
Billing increased 11% to nearly $57 billion. Chief Executive Bernard Looney praised a quarter of the “solid performance” in a statement on Tuesday. Rosneft’s departure resulted in a pre-tax charge of $25.5bn, reflecting the value of the stake in the Russian group but also the loss of revenue in Russia. BP had announced a few days after the start of the Russian invasion of Ukraine that it was leaving Rosneft, of which it held 19.75%.
Slowdown of the energy transition
Last week BP won a majority of the votes at its general meeting, despite significant shareholder protests against its decision to slow down its energy transition or compensation plan. BP announced in February, apart from record results, that it intended to increase its profits by 2030 by investing more, both in renewable energy and hydrocarbons, thus slowing the pace of its energy transition.
BP “once again celebrates massive profits while millions of people in Britain struggle with astronomical energy bills,” lamented the NGO Greenpeace. “It is time that the government intervenes and forces BP and the rest of the oil industry begin to pay for the dégâts qu’ils cause au climat et utilisent l’argent pour faire face à l’impact climatique dévastateur déjà ressenti à travers the world”.
Oil and gas prices set to stay high
In the second quarter, BP “expects oil prices to remain high in response to OPEC+’s recent decision to curtail production, combined with strengthening demand in China, which tends to stretch supply relative to supply.” lawsuit,” the press release explains. Similarly, the energy giant expects LNG prices in Europe and Asia to remain strong on the back of Chinese demand, filling up European stocks and the transition from coal to gas.
On the other hand, the group expects lower refining margins than in the first quarter. BP also expects to post lower oil and gas production in the second quarter than in the first. The share opened 4% lower at 512.7 pence on the London Stock Exchange.
Source: BFM TV
