4 May 2022 11:48

BP post loss of $24 bln in Rosneft stake exit, $2.6 bln from JV, deferred tax

MOSCOW. May 4 (Interfax) - British Petroleum (BP) is reporting a net loss of $24 billion before tax in Q1 2022 from its 19.75% stake in Rosneft , the company said in its financial reporting.

That amount includes a $13.5 billion write-down of the fair value of the net investment, $11.1 billion in pre-tax losses on amounts previously included in total income (the loss arose mainly from foreign exchange losses accumulated from the original investment date in 2013 through February 27, 2022). These expenses are slightly offset - by about $500 million - by Rosneft's share of BP's pre-February 27 earnings.

Furthermore, BP's Q1 results have been adjusted by $1.5 billion, which includes a pre-tax loss from other ventures with Rosneft and $1.1 billion of deferred tax liabilities.

BP reports that due to the decision to exit other Rosneft entities in Russia, the adjusting items for Q1 2022 results also include a $1.5 billion charge. This includes $1 billion before tax, representing impairment of the carrying value of those businesses, and another $0.5 billion of foreign exchange losses, which were recorded directly in equity from the date of the original investments, which were also carried forward to the income statement.

BP also adjusted its results for a $1.1 billion deferred tax liability, which includes tax on BP's share of retained earnings of Rosneft.