Despite its costly Russia withdrawal, bp came out strong in its first-quarter report with bumper profits as the global energy giant also announced a $2.5 billion in share buybacks.
The Q1 2022 report from bp also indicated a replacement cost profit of $6.2 billion, up from $4.1 billion in the previous quarter. This was due to excellent oil and gas trading, greater oil realizations, and a superior refining result, partially offset by the absence of Rosneft from the underlying result in the first quarter.
bp earned $4.1 billion in surplus cash flow in the first quarter and plans to buy back $2.5 billion in shares before reporting its second-quarter results.
At the end of the first quarter, bp’s net debt fall to $27.5 billion.
bp’s report also indicated a headline loss in Q1 2022 of $20.4 billion. This includes $24 billion in non-cash pre-tax charges as well as $1.5 billion from exiting its Rosneft stake in response to Russia’s military action against Ukraine.
bp said that it remains focused on performing while progressing transformation to an Integrated Energy Company.
Since the beginning of 2022, bp has continued to advance its EV charging strategy, announcing plans to invest £1 billion in the UK over the next decade. It also signed a global strategic convenience partnership with Uber, aiming to make more than 3,000 retail locations available on Uber Eats by 2025. It also finalized a deal with DHL Express to supply sustainable aviation fuel.
“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,” said bp CEO Bernard Looney.
He added that bp continues to perform well and they are making progress in implementing its IEC strategy, which entails producing robust hydrocarbons to ensure energy security while investing in the energy transition.