Chris J. Ratcliffe | Bloomberg | Getty Images BP reported high first-quarter earnings on Tuesday and boosted stock markets, despite hitting a huge loss after unloading a nearly 20% stake in Russian-controlled Rosneft. BP’s first-quarter replacement cost of profit, used as an indicator of net profit, was $ 6.2 billion. That compares with $ 4.1 billion in fourth-quarter earnings and $ 2.6 billion in first-quarter 2021. Analysts had expected BP to make $ 4.5 billion in first-quarter profits, according to Refinitiv. The oil and gas giant also announced further acquisitions of $ 2.5 billion worth of shares. However, BP reported a total loss for the quarter of $ 20.4 billion. That included pre-tax charges of $ 24 billion and $ 1.5 billion related to the withdrawal of Rosneft’s stake in response to Moscow’s invasion of Ukraine. “We made the decision to leave Russia within 96 hours of the invasion and today you see the financial implications of that decision,” BP CEO Bernard Looney told CNBC’s Squawk Box Europe on Tuesday. Looney said trading had a “very good” start to the year and net debt – which fell to $ 27.5 billion – fell for the eighth straight quarter. “Overall, in the underlying sense, a good quarter for the company,” he added. The results of the first quarter come as the EU prepares the sixth package of economic sanctions against Russia. the bloc remains divided over how to reduce its dependence on Russian energy supply. Meanwhile, the UK’s major oil and gas companies are facing the prospect of a possible unexpected tax that will help fund a national household support package for spiral energy bills. Britain’s Treasury Secretary Richie Sunak has reportedly opened the door to a possible tax on oil and gas suppliers after repeatedly rejecting the policy, citing fears it could discourage investment. Oil prices are hovering above $ 100 a barrel after climbing to many years earlier this year. Brent crude futures traded at $ 107.64 during the morning deals in London, little changed for the meeting, while West Texas Intermediate futures traded at $ 105.20. BP shares have risen more than 18% on an annual basis. BP reported a huge increase in net profit for the whole year for 2021, the highest of the last eight years, supported by the rise in commodity prices. Global oil demand soared last year, with gasoline and diesel consumption rising as consumers continued to travel and business recovered amid the coronavirus pandemic.
