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BP faces a $20.4B loss as it exits Russia but oil and gas profits surge

BP faces a $20.4B loss as it exits Russia but oil and gas profits surge
BP faces a $20.4B loss as it exits Russia but oil and gas profits surge

BP plc, the British oil & gas firm, has reportedly recorded a loss of $20.4 billion (£16.3 billion) in Q1 of this year, yet faced a renewed backlash over soaring profits recorded from its oil & gas operations.

Thanks to robust oil and gas prices, that had been proven profitable before Putin's invasion of Ukraine, the corporation posted a net profit of $6.25 billion for the January to March quarter, the biggest in over a decade.

After the firm's decision to quit Russia in February, BP's bottom line loss was triggered by a $24 billion non-cash write-down of the 19.75% investment in the oil company Rosneft as well as two additional joint ventures.

The innate profit figure, on the other hand, prompted new demands for the government to impose a windfall tax on energy profits, which ministers have so far turned down on the grounds that such a step would impact investment in the nation's greener future.

BP also announced an £18 billion investment in UK's energy security over the coming eight years, including money for the North Sea oil and gas projects, which are expected to generate £1 billion in tax revenue for the UK Treasury this year alone.

However, as part of its efforts to fight climate change, the firm stated that under its integrated energy company (IEC) net-zero target, investments would include commitments to cut operational emissions.

According to the firm, the investment will include capital for additional electric car charging stations and wind power.

Bernard Looney, BP’s CEO, stated that the company is backing Britain. In a quarter marked by unfortunate events in Ukraine along with energy market volatility, BP's priority has been on delivering the reliable power that customers require, he told investors.

As the sector continues to experience proposals for a windfall tax from opposition leaders in Westminster, BP is eager to tout its role in influencing energy security.

The company’s underlying profitability has been significantly elevated on the back of natural gas prices reaching new highs.

The oil and gas firm announced it would keep its payout at 5.46 cents per share and increase its share repurchase program to $1.5 billion per quarter to incentivize shareholders.

Source credit: https://news.sky.com/story/bp-slumps-to-20-4bn-loss-as-it-books-cost-of-russia-oil-and-gas-exit-12604485

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and RunningAfrica. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.