The FTSE 100 slipped on the first day back after the long weekend despite BP (BP) reporting bumper underlying profits on the back of buoyant crude prices, helping to offset its costly exit from Russia.

The blue-chip index dipped into the red, losing 0.3%, or 26 points, to trade at 7,520 as the bank holiday weekend meant a delay in registering last Friday’s sharp selloff for US stocks.

Investors also had one eye on the potential geopolitical impact of prime minister Boris Johnson’s speech to Ukraine’s parliament later today, when he is expected to announce £300m in military aid. Johnson will be the first Western leader to address the parliament, and Russia has warned nations about retaliation if they arm Ukraine.

The biggest news among UK shares came from BP, whose shares were up 2.2%, or 9p, at 400p, despite announcing a $20.4bn (£16.3bn) quarterly loss. Hargreaves Lansdown analyst Susannah Streeter said that was ‘far from unexpected’ after extricating itself from a large stake in Russian state-owned oil company Rosneft. 

The positive surprise came in the form of a boost to underlying profits, which hit $6.2bn in the first quarter and were ‘sharply higher than the consensus’ and double the same time last year, said Streeter.

‘The company has been raking in cash as the supply squeeze on oil markets has intensified,’ she said. 

‘With growing expectation that the European Union will slap a ban on Russian crude exports at the end of the year, the [oil] price is set to stay elevated, which will help BP recoup the cost of its expensive [Rosneft] exit.’

The performance was so strong that several analysts raised concerns about renewed calls for a windfall tax to help ameliorate consumers’ sky-high energy bills. 

The oil major also announced plans for an £18bn investment in the UK, including a trebling of its electric vehicle charging points by 2030 and continued spending on North Sea oil and gas.

Shell (SHEL) failed to benefit from the news, shedding 0.5% to trade at £21.60.

Endeavour Mining (EDV) was down 2.2% at £19.15, while utility groups Severn Trent (SVT) and United Utilities (UU) lost 1.7% and 1.6%, respectively.

The FTSE 250 had a similarly disappointing morning compared with European peers, trading flat at 20,700 despite a 5.7% jump in Auction Technology (ATG) shares, which rose to 926p after JP Morgan upgraded its rating to ‘overweight’.

Dragging down the mid-caps were fund management services provider JTC (JTC), which dropped 3.5%, or 28p, to 753p, and specialty pharmaceutical business Indivior (INDV), which fell 3% to 303p.

Warehouse Reits tumble

Warehouse investor Segro (SGRO) tumbled 5% to the bottom of the blue chips, shedding 67p to £12.75 after a report on an increase in short bets against the shares. Kepler Cheuvreux cut its rating to ‘reduce’ from ‘hold’ with its target price pruned from £13.60 to £12.40.

Rival logistics-focused real estate investment trusts retreated with Tritax Big Box (BBOX ) sliding 7.6% to 228.4p, having closed last week on a 5% premium to asset value, and Londonmetric Properties (LMP) dropping 3.8% to 259.4p. Picton Property Income (PCTN ), a generalist UK Reit, slipped 3.9% to 97.7p from a 15% discount to net asset value (NAV), and Sirius Real Estate (SRE ), a German focused business park owner, gave up 3.3% to 117.4p.

Renewable energy funds continued their strong run. Foresight Solar Fund (FSFL ) gained 4% to 118.4p on a 6% premium after posting an 8.2% rise in net asset value in the first quarter driven by rising power price forecasts and inflation.

Harmony Energy Income (HEIT ) also advanced 4% to 115p on a 10% premium after agreed to price rises from battery supplier Tesla in return for enhanced contractual terms it said would allow it to maximise profitability in the current strong conditions for energy trading.

Apax Global Alpha (APAX ) rallied 2.9% to 192.3p after falling to a wide 25% discount last week, but BlackRock Throgmorton (THRG ), the UK smaller companies’ trust that has featured in the ‘cheap’ list of our Trust Watch for the past two weeks, shed 2.8% to 636p from a comparatively low 7% discount for the previously highly-rated fund.