BP plunges into $20.4-bn loss on Russia exit  

BP plunges into $20.4-bn loss on Russia exit  

BP plunges into $20.4-bn loss on Russia exit

British energy giant BP said yesterday that its decision to pull out of Russia as a result of the war in Ukraine pushed it deep into the red in the first three months of this year.     

BP said in a statement it booked net loss of $20.4 billion (19.4 billion euros) in the period from January to March compared with a bottom-line profit of $4.7 billion a year earlier.    

The huge loss was attributable to the group’s decision in February to pull its 19.75-percent stake in energy group Rosneft, ending more than three decades of investment in Russia, BP said.  

“Our decision... to exit our shareholding in Rosneft resulted in the material non-cash charges and headline loss,” BP chief executive Bernard Looney said in a statement.    

BP said the charges connected to the break with Rosneft amounted to $25.5 billion before tax.     

That wiped out the positive effect of rising energy prices, driven by concerns of tight supplies following the invasion by major oil and gas producer Russia, the group said.     

First-quarter revenues jumped by 40 percent to $51 billion.  

“In a quarter dominated by the tragic events in Ukraine and volatility in energy markets, BP’s focus has been on supplying the reliable energy our customers need,” Looney said.                 

BP also announced plans to invest up to 18 billion ($22.5 billion, 21.5 billion euros) in green and fossil fuel operations in the U.K. by the end of the decade.

The company has also proposed new offshore wind projects and plans for hydrogen production facilities.