COMPANY NEWS IN BRIEF

BP back in profit

British energy giant BP on Tuesday posted net profit of US$8.2 billion for the first quarter, which compared with a record loss a year earlier as it ended operations in Russia.

In the first three months of 2022, BP recorded its biggest quarterly loss after tax, at $20.4 billion, as Moscow's invasion of Ukraine caused its exit from Russian business.

BP had booked a year ago a pre-tax charge of US$25.5 billion after abandoning its 19.75 percent stake in energy group Rosneft, ending more than three decades of investment in Russia.

That wiped out the positive effect of surging energy prices that were driven by tighter supplies following the invasion by major oil and gas producer Russia.

BP chief executive Bernard Looney called this year's first-quarter performance "strong" as the group focuses "on safe and reliable operations". The company added that it would return US$1.75 billion to shareholders.-Fin24

Adnoc inks US$1bn deal with TotalEnergies

The United Arab Emirates' ADNOC Gas announced Monday a US$1 billion deal to provide liquefied natural gas to France's TotalEnergies as Europe scrambles to find alternatives to Russian energy sources.

The liquefied natural gas provided under the three-year supply deal "will be delivered to various export markets around the world", a company statement said.

The agreement is valued at between US$1 billion and US$1.2 billion, the statement said, without elaborating on the quantities involved.

The deal was signed with TotalEnergies Gas and Power Limited, a subsidiary of the French multinational.

ADNOC Gas, which only became operational at the start of this year, is a subsidiary of state-owned energy giant Abu Dhabi National Oil Company (ADNOC).

The UAE has emerged as a key partner for Western countries as they scramble to secure energy deals worldwide to replace imports from sanctions-hit Russia.

In July, a deal between Total Energies and ADNOC was signed "for cooperation in the area of energy supplies" during a visit by UAE President Sheikh Mohamed bin Zayed Al-Nahyan to Paris.-Fin24

JPMorgan to acquire First Republic

JPMorgan Chase & Co. won the bidding to acquire First Republic Bank in an emergency government-led intervention after private rescue efforts failed to fill a hole on the troubled lender’s balance sheet and customers yanked their deposits.

JPMorgan will take over First Republic’s assets, including about US$173 billion of loans and US$30 billion of securities, as well as UYS$92 billion in deposits. JPMorgan and the Federal Deposit Insurance Corp., which orchestrated the sale, agreed to share the burden of losses, as well as any recoveries, on the firm’s single-family and commercial loans, the agency said early Monday in a statement.

"Our government invited us and others to step up, and we did," JPMorgan Chief Executive Officer Jamie Dimon said in a statement. "Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund."

The transaction makes JPMorgan, the nation’s largest bank, even more massive — an outcome government officials have taken pains to avoid in the past. Because of US regulatory restrictions, JPMorgan’s size and its existing share of the US deposit base would prevent it under normal circumstances from expanding its deposit base further via an acquisition. And prominent Democratic lawmakers and the Biden administration have chafed at consolidation in the financial industry and other sectors.

JPMorgan expects to recognize a one-time gain of US$2.6 billion tied to the transaction, according to a statement. The bank estimated it will incur US$2 billion in related restructuring costs over the next 18 months.-Fin24

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Namibian Sun 2024-11-23

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