LONDON, July 29 (Xinhua) -- British energy company BP warned that further sanctions against Russia could affect its profits, despite reporting a sharp rise in second quarter profits Tuesday.
The oil giant, that owns a 19.75 percent-stake in Russian state oil company Rosneft, said the Ukraine crisis had not had a significant effect on its business yet, but could do so in the future.
"If further international sanctions are imposed on Rosneft or new sanctions are imposed on Russia or other Russian individuals or entities, this could have a material adverse impact on our relationship with and investment in Rosneft, our business and strategic objectives in Russia and our financial position and results of operations," the company said.
Things could get harder with the European Union poised to announce tougher sanctions against Russia. BP acknowledged that its reputation was at stake over its ties with the Russian state oil giant.
Announcing its financial results for the second quarter of 2014, BP said underlying replacement cost profit was 3.6 billion U.S. dollars, 34 percent higher than a year earlier and 13 percent higher than the first quarter of 2014.
BP's net income from Rosneft for the quarter was 1 billion U.S. dollars. It also received a dividend payment of about 700 million U.S. dollars earlier in July.
"This was another successful quarter, delivering both operational progress and robust cash flow," said Bob Dudley, BP group chief executive.
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