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The British energy giant BP published this Tuesday a huge loss in the first quarter after leaving Russia for the invasion of Ukraine and despite the increase in income due to higher gas and oil prices.

The net loss reaches 20.4 billion dollars against a profit of 4.7 billion dollars a year ago, while the turnover was 51.2 billion dollars, an increase of 40.3%, according to a statement on Tuesday.

“In a quarter dominated by the tragic events in Ukraine and volatility in the energy markets, BP’s priority has been to supply the reliable energy our customers need,” said CEO Bernard Looney.

In February, the British company decided to divest its 19.75% stake in the Russian energy group Rosneft, ending more than three decades of investment in that country.

“Our decision in February to part ways with us in Rosneft translates into a strong loss (…) but it has not changed our strategy, our financial framework or our expectations in terms of distribution to shareholders,” he added.

Rosneft’s departure results in a pre-tax charge of $25.5 billion linked to lost revenue in Russia.

The British group, which had said it was divesting itself of its other interests in Russia, had been present in Russia for more than 30 years and had been a Rosneft shareholder since 2013.

Stripping out one-off items, BP posted an underlying profit of about $6.2 billion, a record since 2008, thanks to revenue boosted by high hydrocarbon prices.

It is important to indicate that BP continues (…) producing resilient hydrocarbons to provide energy security while investing with discipline in the energy transition,” he concluded.

BP also announced on Tuesday its intention to invest up to 18 billion pounds ($22 billion) in the UK between now and 2030, “to help the country reach its target of carbon neutrality“.

Before the Russian invasion of Ukrainethe British government has shifted its focus from the transition to carbon neutrality to energy security.

For this reason, BP informs that “it will continue to invest in oil and gas from the North Sea”.


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