BP, the British energy behemoth, posted a net profit of $8.2 billion for the first quarter. Recovering from a record loss a year earlier when it ceased operations in Russia following the invasion of Ukraine.
The company reported its largest quarterly loss ever in the first three months of 2022, at $20.4 billion after taxes. After Moscow’s invasion on Ukraine and following Western sanctions forced its pullout from Russian industry.
It resulted in a $25.5 billion pre-tax charge from abandoning its 19.75 percent stake in energy group Rosneft. Effectively ending BP’s investment in Russia after more than three decades.
This negated the good impact of rising energy costs caused by tighter supply. As a result of international efforts to isolate Russia, a major oil and gas producer.
BP CEO Bernard Looney described this year’s first-quarter performance as “strong,” as the company concentrates on “safe and reliable operations.”
The corporation also announced a $1.75 billion dividend payout to stockholders.
BP also stated that underlying profit fell by one-fifth to $5 billion due to lower oil prices compared to the previous year.
Following the results, BP shares fell 4.7 percent to 509 pence on London‘s benchmark FTSE 100 index, which was slightly higher overall.
CMC Markets’ chief market analyst, Michael Hewson, stated that a “cautious outlook appears to be weighing on the shares.”
BP “expects lower oil and gas production due to seasonal maintenance. As well as a squeeze on margins, particularly in refining,” he said.
Activists were particularly outraged by BP’s high profits as customers continue to confront a cost-of-living crisis. Partly as a result of increasing energy costs caused by the Ukraine incursion.
“The energy crisis has shone a spotlight on the huge gulf between the winners and losers of our fossil fuel-based economy, with oil giants like BP laughing all the way to the bank,” said Jonathan Noronha-Gant, senior campaigner at Global Witness.