BP plunges into huge loss on Russia exit

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BP revenue jumped 40 percent to $51 billion in the first quarter from a year earlier.

BRITISH energy giant BP on Tuesday plunged into a huge net loss in the first quarter after it decided to exit Russia over the country’s invasion of neighbour Ukraine.

The loss after tax stood at $20.4 billion (R320 billion) following BP’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 had posted a net profit of $4.7 billion in the first quarter of 2021.

“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.

The group booked a pre-tax charge of $25.5 billion owing to its break with Rosneft.

That wiped out the benefit of surging energy prices, which have been fuelled by fears of tight supplies following the invasion by major oil and gas producer Russia.

BP revenue jumped 40 percent to $51 billion in the first quarter from a year earlier. –AFP

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