BP’s profit from participation in Rosneft capital grew by 307% over the year

Photo of author

By admin

The profit of the British transnational oil and gas company BP from participation in the capital of Rosneft grew by 307% over the year. This information follows from the data of the financial statements of BP, which came to Izvestia on Tuesday, April 27.

BP owns 19.75% in Rosneft.

At the end of the first quarter of 2021, the share of the British company in the net profit of the Russian holding amounted to $ 451 million, which is 53% higher than in the previous quarter and three times higher than in 2020.

The British company, due to its participation in Rosneft, was able to reflect in the reporting another positive moment for investors – hydrocarbon production in the amount of 1.05 million barrels of oil equivalent (boe) per day. As a result, almost a third of BP’s total production – 3.27 million boe. – obtained thanks to a Russian oil holding.

At the same time, the basic profit at replacement cost of BP was $ 2.6 billion, operating cash flow – $ 6.1 billion.

BP Russia President David Campbell told reporters on the sidelines of the National Oil and Gas Forum in Moscow earlier on Tuesday that the company is not going to reduce its stake in Rosneft and plans to expand the number of joint projects. The Forum and the 20th anniversary international exhibition “Neftegaz-2021” are held on April 27-28 in the capital’s “Expocentre”.

“We are very pleased with our participation in Rosneft, we have cooperation in many areas,” said Campbell. He admitted that the joint projects of the companies could expand as the Russian oil holding is very committed to reducing its carbon footprint.

BP’s press service recalls that the company’s chief executive officer Bernard Looney said in March that it has a “long, deep and strategic partnership with Rosneft.”

A positive example of cooperation between the two companies was noted by Russian President Vladimir Putin at a meeting of the Board of Trustees of the Russian Geographical Society on April 14.

“I know that your cooperation with the Russian company Rosneft is proceeding very successfully, and the capitalization of your company, bearing in mind the reserves that are growing, including on the territory of the Russian Federation, has positive values,” the Russian leader said, addressing Luni …

BP’s 1Q2020 net income was $ 791 million, down 66% year-on-year. The reason for the fall was the coronavirus pandemic, which triggered a halt in production and a drop in consumer demand, as well as in oil prices.

BP is the largest minority shareholder of Rosneft and its partner in a number of significant projects in exploration, production, refining and retail business. Russia is the only large country in which the company completely replaces production with reserves.