BP profits rise to £23bn, adding fuel to calls for toughened windfall tax

BP’s yearly profits much than doubled to $28bn (£23bn) successful 2022 arsenic a crisp summation successful state prices linked to the Ukraine warfare boosted its earnings, adding substance to calls for a toughened windfall tax.

The immense nett is apt to choler user and greenish groups, arsenic lipid companies reap rewards from higher state prices portion galore households conflict to header with a crisp emergence successful vigor bills.

The Labour enactment past week asked for Britain’s vigor profits levy to beryllium revamped to seizure much of the exceptional net made by lipid and state firms, aft Shell’s profits more than doubled to $40bn, the biggest profits successful its 115-year history.

The instauration of a windfall taxation connected North Sea lipid and state firms past twelvemonth followed comments by the BP main executive, Bernard Looney, successful which helium likened the institution to a “cash machine” and admitted the levy would not forestall it making immoderate planned investments.

BP said it had incurred full taxes of $15bn worldwide – its highest yearly total. In the North Sea, which it said accounts for little than 10% of planetary profits, it volition wage $2.2bn successful taxation for 2022, including $700m due to the fact that of UK windfall taxes, known arsenic the vigor profits levy. In November, it said it expected to wage $800m successful windfall taxation connected its North Sea operations.

The lipid and state institution reported underling profits of $4.8bn for the last 3 months of the year, bringing its yearly net to $27.7bn, good ahead of the underlying profits of $12.8bn posted successful 2021.

The fourth-quarter profits correspond a slowdown from the $8.2bn recorded successful the erstwhile 3 months, but inactive outstrip the $4.1bn it made successful the equivalent 4th a twelvemonth earlier. Analysts had expected a nett of astir $5bn for the quarter.

The institution announced a 10% summation to its quarterly dividend, and said it would walk a further $2.75bn buying backmost its ain shares.