BP Shares Move Higher On Bumper Q1 Profits Of $6.2B, Announces $2.5B Share Buyback

  • BP plc’s BP profits more than doubled to $6.2 billion in Q1, helped by soaring oil and gas prices, despite posting a massive loss after offloading its nearly 20% stake in a Russian-controlled oil company Rosneft RNFTF.
  • The company reported Q1 adjusted EPS of $1.92, more than double from $0.78 posted a year ago and beating the consensus of $1.33.
  • However, BP reported a headline loss of $20.4 billion, including non-cash pre-tax charges of $24 billion and $1.5 billion relating to the exit of its Rosneft stake in response to Moscow’s invasion of Ukraine.
  • During Q1, BP generated a surplus cash flow of $4.1 billion, and it intends to execute a $2.5 billion share buyback before announcing its second-quarter results.
  • BP reported sales of $51.22 billion, +41% Y/Y, missing the consensus of $57.71 billion.
  • Production: Reported production of 966 mboe/day, up 6.2% Y/Y. Underlying production was also higher, by 10.9%.
  • Realized prices jumped almost 90% at $50.91/boe.
  • Guidance: BP expects Q2 FY22 underlying upstream production to be lower than Q1 FY22, primarily in gas & low carbon energy, reflecting base decline and seasonal maintenance. 
  • On a reported basis, Q2 production will reflect additional impacts from the absence of production from Russia incorporated joint ventures. 
  • Price Action: BP shares are up 6.16% at $30.64 during the market session on the last check Tuesday.
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