BP posts a US$2.5bn loss in 2022 due to Russian exit

8 Feb 2023

BP has released its 2022 results, posting a US$2.5bn loss, compared to a US$7.6bn profit in 2021. Indeed, the company decided to abandon its 19.75% stake in the Russian oil and gas company Rosneft following Russia’s invasion of Ukraine, taking a charge of US$24bn in its accounts. However, BP’s underlying profit, which does not take into account exceptional event, reached US$27.7bn in 2022, compared to US$12.8bn in 2021.

BP’s upstream production rose by nearly 2% in 2022 to 2,253 kboe/d. Due to the exit from Russia, the company’s oil and gas production declined by 1% to 1,297 kboe/d in 2022, including 2 bcf/d (20.6 bcm) of natural gas (+5%) and 952 kb/d of liquids (-3%). In the LNG segment, output increased by 5% to 957 kboe/d, with 4.9 bcf/d (50 bcm) of natural gas (+5%) and 118 kb/d of liquids (+4%). In addition, BP sold 2,963 kb/d of refined products in 2022 (+5%), including 1,136 kb/d in the US (+2%) and 1,021 kb/d in Europe (+18%). The company’s refinery throughputs reached 1,504 kb/d in 2022 (-6%), including 804 kb/d in Europe (+2%) and 678 kb/d in the US (-6%). Finally, BP’s installed renewables capacity rose by 252 MW in 2022 to 2.2 GW at the end of the year.

BP has also updated its integrated energy company strategy. The group plans to invest an additional US$8bn to 2030 into transition businesses, with total investment in this segment reaching US$7-9bn/year in 2030. Cumulative investment over 2023-2030 should amount to US$55-65bn, with half of the amount going to bioenergy and convenience and EV charging; the other half should be spent on hydrogen, renewables and power.

The company is also increasing investments in fossil energy, with a cumulative US$8bn to 2030, targeting shorter-term, fast-payback projects that maximise value and can deliver rapidly, with minimal new infrastructure. Consequently, BP targets an oil and gas production of 2.3 mboe/d in 2025 and 2 mboe/d in 2030.

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