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Russian economy dip could cost BP

Oil major BP could face a sizable fourth quarter loss on its Rosneft share caused by the 47% slide in the ruble over the past three months.

According to reports, city analysts have had forecast losses to be as much as $750million.

BP currently has a 19.75% shareholding in the Russian energy company which it acquired in 2013.

Last year, Rosneft accounted for almost a third of BP’s total oil and gas output in the first nine months of the year.

The investment bank, Tudor Pickering Holt, forecast a “massive earnings hit” for the fourth quarter.

BMO said the loss could drive down the company’s earnings per share to as little as five cents.

In December the ruble hit an all-time low as Russia struggled with the combined blows of western sanctions and a worldwide fall in oil prices.

Last year, the ruble lost more than 25% of its value.

NA
Copyright:
Energy Voice
Published on:
January 5, 2015
Source url:
https://www.energyvoice.com/marketinfo/71944/russian-economy-dip-cost-bp/
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