Energy giant BP sees profits double to record £23 billion

7 February 2023, 08:40 | Updated: 7 February 2023, 08:44

BP's soaring profits have led to calls for energy firms to pay more tax as households struggle to pay bills.
BP's soaring profits have led to calls for energy firms to pay more tax as households struggle to pay bills. Picture: LBC / Alamy

By Danielle DeWolfe

Energy giant BP has announced record-breaking financial results, as profits more than double to £23 billion ($27.7bn) following Russia's invasion of Ukraine.

BP's profits follow results from rival energy companies including Shell, who last week announced recording earnings of nearly $40 billion last week.

Benard Looney, BP’s chief executive, announced the firm’s annual profits were aided by the “lowest production costs in 16 years.”

However, the staggering profits posted on Tuesday come in the wake of soaring energy costs for households up and down the country.

The soaring profits have led to calls for energy firms to pay more tax as households struggle to pay bills.
The soaring profits have led to calls for energy firms to pay more tax as households struggle to pay bills. Picture: LBC / Alamy

It's led to widespread calls for energy firms to pay more tax, as many struggle under the weight of rising bills.

Looney said BP was "helping provide the energy the world needs" and channeling investment into greener energy.

He noted that “importantly” the British company continues “delivering for our shareholders – with buybacks and a growing dividend.”

The huge profits being made by oil and gas giants have led to the introduction of a windfall tax aimed at helping those struggling with higher heating and electricity bills.

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The figures for 2022 contrast 2021 figures, with the British giant posting profits of $12.8bn in 2021.

Energy prices initially began to climb following the lifting of Covid lockdown restrictions, however, it was Russia's invasion of Ukraine in March that sparked concerns about supplies.

recent months have seen calls to close what Labour has described as a "loophole" in the tax rules which allows firms to pay less.
recent months have seen calls to close what Labour has described as a "loophole" in the tax rules which allows firms to pay less. Picture: LBC / Alamy

The result caused oil prices to skyrocket amid the growing uncertainty.

Following the invasion, the price of Brent crude oil reached nearly $128 a barrel - since tumbling back down to around $80 a barrel.

Gas prices showed a similar trend.

Following the results, BP also pledged to invest an additional eight billion dollars (£6.6 billion) in the transition to greener energy.

BP said the staggering profits had been affected by results from the company's gas marketing division, which saw below average results after an' exceptional' third quarter.

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