Oil companies are running away from Russia
Plus: HP cashes in, stops shipment to Russia & Pepsico's stock takes a Russian hit
Hello there,
BP & Shell are leaving, others follow suit.
Why it matters: Oil companies have been politically and financially vulnerable this decade and the current Russia-Ukraine tension isn’t making it easier. The shares of BP (BP) have been failing this past month with a 8% low on Monday because of its exposure to Russia. BP (BP), Shell (SHEL) and others have made decisions to exit affiliations with Russian companies despite the large losses they will incur. Equinor (EQNR), though up 0.9%, has said it would also exit its Russian joint ventures. (Barrons)
HP cashes in, stops shipment to Russia
HP has decided to stop shipment to Russia in light of the Russia-Ukraine conflict.
Why it matters: With concerns of the slow growth of PCs and the ongoing supply challenges, HP (HPQ) smashes those concerns with its earnings release. The computing giant made an increase of 26% and 9% in its sales of commercial computers and printers from the previous year. The giant has also announced it has stopped shipments to Russia in view of the country’s invasion on Ukraine. (Yahoo)
Meanwhile…
Pepsico’s stock takes a Russian hit
Shares of the beverage giant ended the day with a 2.8% low.
Why it matters: Pepsico’s (PEP) stock fell as investors are concerned with its exposure to Russia. After Mexico, Russia is the second-largest international market of the beverage and snack-food giant, the country generated 4% of its revenue in 2021. Pepsico is yet to make a comment regarding this. (Barrons)