BP books $25.5 billion in impairments on Russian exit

As a consequence, the British power main booked a internet lack of $20.38 billion for the primary quarter of the 12 months–in contrast with a $2.33 billion revenue within the fourth quarter of 2021.

“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,” Chief Executive Bernard Looney mentioned. As a part of the exit from Rosneft, Mr. Looney in February resigned from the board of the Russian firm.

Underlying alternative price revenue, the corporate’s most well-liked metric, rose to $6.25 billion within the first quarter from $4.07 billion, reflecting distinctive oil and fuel buying and selling income, increased oil realizations and a stronger refining consequence. This was above the market consensus of $4.49 billion compiled by BP and averaged from 26 brokers.

Operating money circulate elevated to $8.21 billion from $6.12 billion. Net debt was lowered to $27.46 billion from $30.61 billion.

BP declared a dividend of 5.46 cents a share for the primary quarter, consistent with the instantly prior interval, and a buyback of $2.5 billion to be executed earlier than its second-quarter outcomes. This represents a rise in contrast with share repurchases of $1.6 billion in the course of the first quarter.

As for the second quarter, BP forecast that its upstream manufacturing will fall reflecting base decline, seasonal upkeep and the absence of output from joint ventures in Russia. However, refining margins are anticipated to be increased and power costs are anticipated to stay elevated.

For the total 12 months 2022, BP continues to anticipate broadly flat upstream manufacturing regardless of the exit from Russia.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT