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• The company announced a share buyback of $2.5 billion
BP plc (NYSE: BP) posted a massive headline loss of $20.4 billion for the first quarter, making it the largest loss posted by a company after exiting its operations from Russia, post the country’s assault on Ukraine.
The company posted a pretax accounting charge of $25.5 billion related to its decision to exit its Russia holdings, along with a $13.5 billion write-down of its nearly 20% stake in the government-owned, Rosneft.
Despite the offloading loss, the company’s replacement cost profit (a proxy for net profit), jumped to its highest level in more than a decade to $6.2 billion, versus the estimated $4.5 billion.
The company said it would continue to reduce debt and maintain its full-year capital-spending plans at $14 billion to $15 billion, including $2.9 billion in capital expenditures in the first quarter.
The company announced a share buyback of $2.5 billion of its shares, in addition to the $1.6 billion in buybacks it made during the first quarter.
BP assured the investors that the Russia-related losses don’t change the company’s strategy or cut into its plans to distribute cash to investors.
“We decided to exit Russia within 96 hours of the invasion happening and today you’re seeing the financial implications of that decision,” BP CEO Bernard Looney told CNBC.
Source - BP
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