HOT TAKE: BP’s LNG hedge turns sour

But ‘exceptional’ gas trading propels earnings

BP took a surprise $10 billion hit on the value of its LNG portfolio in Q3’22 results released today. The impairment dragged the British oil major to a quarterly loss of almost $2.2 billion, eclipsing bumper profits from inflated oil prices.

How did this happen? First, its important to clarify that the loss applies to BP’s results under IFRS (Internation…