Profit from BP’s participation in Rosneft over the year fell by 3.5 times

In January—March 2016 pre-tax profit from 19,75% in “Rosneft” British BP has brought in about $62 million profit, according to the report. Also stresses that these figures are approximate and based on preliminary information about quarterly profit of “Rosneft”, using the weighted average rate of ruble against the US dollar since the beginning of the year.

At the same time a year ago pre-tax profit (EBIT) of the group from participation in Rosneft amounted to $221 million in the previous quarter to $189 million.

A sharp drop in indicators of BP explains decline in oil prices, partially offset “favourable exchange rate differences”.

At the same time, the so-called underlying profit from recoverable amount amounted to “Rosneft”, according to BP, $66 million in the first quarter of 2016. A year earlier it was $183 million, while in the previous quarter, at the end of 2015, even more, at $235 million.

The BP management calls for the use of this index underlying profit as a more accurate representation of the state of Affairs of the company, “cleaned” from the influence of oil prices on the cost of storing inventory.

Overall British Corporation in January—March 2016 managed to reduce net loss of almost six times: with a record $3.3 billion in the fourth quarter of 2015 to $583 million at the beginning of the current year. According to the statements, this contributed to improve the efficiency of key areas. Thus, the loss in the upstream segment decreased by half, to $1.2 billion, and profit for the downstream segment increased almost three times to $1.9 billion.

At the same time increasing the debt load of the company. So, net debt by the end of the quarter amounted to $30 billion (against us $25.1 billion a year ago).

Adjusted net income across the group — the basic earnings, excluding storage of oil reserves amounted to $532 million Bloomberg survey before publication of the report, analysts had expected even by this measure, BP has come a long, waiting an average of $244 million loss.

In addition, Bloomberg welcomed the steps to enhance the effectiveness of BP. Besides reducing losses and increasing profits in the core segments we are talking about profitability. So, if before the British group argued that the ability to close the period without losses with oil prices at $60 per barrel, now we are talking about a $50-55 per barrel by next year.

In the previous quarter, underlying profit was even lower, amounting to only $196 million a Year earlier, in early 2015, the index stood at $2,58 billion Decline for the year was 80%.

BP became the first major oil companies, published the results for the first quarter. The market has had time to respond to her statements: the company’s share price on the London stock exchange in the first minutes of trading and soared by more than 3%.