The Strategist

BP shares show the lowest fall in three months

03/01/2022 - 10:53

BP's stock dropped more than 8% in premarket trading, the biggest loss in three months.

In pre-market trading on Monday, February 28, shares of oil and gas company BP were down more than 8%. According to Bloomberg, it's the greatest loss in three months. Later, the company’s shares were trading at $28.7, down 6.61 percent from Friday's closing price.

According to Bloomberg, BP was unable to find a buyer for its investment in the Russian company Rosneft.

BP has stated that it would sell its 19.75 percent investment in Rosneft and exit joint ventures with the Russian state business. Furthermore, both BP-nominated representatives will step down from the board of directors of Rosneft.

The company's decision is linked to Russia's military activity in Ukraine, which will "have devastating effects in the region," according to BP Chairman of the Board Helge Lund. BP has a long history in Russia, but "having a stake in Rosneft no longer conforms to BP's business and strategy," he noted. According to BP, the move might result in losses of up to $25 billion. Rosneft is responsible for over half of the company's oil and gas reserves, as well as a third of its output.