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BP profits more than double to 71bn amid windfall tax pressure

todayNovember 1, 2022

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BP profits more than double to £7.1bn amid windfall tax pressure

BP has revealed its profits more than doubled for the past three months amid ratcheting calls for stiffer windfall taxes for energy producers.

It came as BP confirmed it will be hit by the windfall tax on its UK operations this year, unlike rival Shell.

The London-listed oil giant reported that underlying replacement cost profits – a measure preferred by BP – surged to 8.2 billion US dollars (£7.1 billion) for the quarter to September, compared with 3.3 billion dollars (£2.9 billion) a year earlier.

It was significantly ahead of the 6.1 billion dollars (£5.3 billion) expected by market analysts.

Nevertheless, BP said profits were weaker than the previous quarter after a dip in average oil price.

In June, the cost of a barrel of Brent crude oil hovered at around 114 dollars per barrel, but since early July the measure has rarely risen above the 100-dollar line.

On Tuesday, a barrel of crude would set a buyer back around 94 dollars (£81).

Energy prices are, however, still at elevated levels following the Russian invasion of Ukraine and therefore set to weigh heavily on household budgets over winter.

BP confirmed that it will pay UK windfall taxes this year.

It told shareholders it will pay out 2.5 billion dollars (£2.2 billion) in taxes for its UK North Sea business in 2022, as well as 800 million dollars (£695 million) of tax related to the energy profits levy.

Chief executive Bernard Looney said: “This quarter’s results reflect us continuing to perform while transforming.

“We remain focused on helping to solve the energy trilemma – secure, affordable and lower carbon energy.

“We are providing the oil and gas the world needs today – while at the same time investing to accelerate the energy transition.

“Our agreement on Archaea Energy is the most recent step in our strategic transformation of BP.”

Published: 01/11/2022 by Radio NewsHub

Written by: NDR NEWS

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