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BP Slips To Hefty RC Loss In Q1; Underlying RC Profit Tops Estimates; Declares Dividend

British energy major bp Plc (BP,BP.L) reported Tuesday that its first-quarter replacement cost or RC loss was $23.05 billion, compared to last year's profit of $3.33 billion.

Loss attributable to bp shareholders in the first quarter was $20.38 billion, compared to a profit of $4.67 billion in the first quarter of 2021.

The latest results included adjusting items before tax of $30.8 billion primarily due to bp's decision to exit its 19.75% shareholding in Rosneft and its other businesses with Rosneft in Russia.

Underlying RC profit was $6.25 billion, compared to $2.63 billion a year ago. This was driven by exceptional oil and gas trading, higher oil realizations and a stronger refining result, partly offset by the absence of Rosneft from the first quarter underlying result.

Underlying RC profit per ordinary share was 32 cents, compared to 12.95 cents last year.

Underlying RC profit per ADS was $1.92, up from $0.78 a year ago.

On average, ten analysts polled by Thomson Reuters expected earnings of $1.35 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues and other income climbed to $51.22 billion from last year's $36.49 billion. Sales and other operating revenues grew to $49.26 billion from prior year's $34.54 billion.

Analysts expected revenues of $57.71 billion for the quarter.

For the first quarter, bp has announced a dividend of 5.46 cents per ordinary share payable in June 2022.

Looking ahead, for the second quarter, the company expects underlying upstream production to be lower than first-quarter 2022.

For full year 2022, the company continues to expect reported upstream production to be broadly flat compared with 2021.

Further, bp has now revised its 2030 adjusted EBITDA aims for resilient hydrocarbons and group by lowering both by around $2 billion, to a range of $28 billion to $33 billion and $39 billion to $46 billion, respectively.

As a result of the decision to exit its shareholding in Rosneft and excluding Rosneft from base year and future periods, on 27 February bp outlined an expectation that 2025 adjusted EBITDA from resilient hydrocarbons and group will be around $2 billion lower than bp's previous targets, at around $31 billion and $38 billion respectively.

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