BP’s shares are up more than 45% since the start of the year.
soba pictures | Light Rocket | Getty Images
Oil and gas giant BP On Tuesday, it reported stronger-than-expected third-quarter earnings, buoyed by higher commodity prices and strong gas marketing and trading.
The major British energy company reported a base replacement cost profit, used as a proxy for net profit, of $8.2 billion for the three months to the end of September. This is compared to $8.5 billion in the previous quarter, which represents a significant increase from the previous year, when the net profit came at $3.3 billion.
Analysts polled by Refinitiv expected third-quarter net profit to reach $6 billion.
BP announced another $2.5 billion in share buybacks, and said net debt had fallen to $22 billion, down from $22.8 billion in the second quarter.
It posted a net loss for the quarter of $2.2 billion, compared to a profit of $9.3 billion in the previous quarter. BP said its third-quarter results included inventory holding losses net of tax of $2.2 billion and item adjustment fees net of tax of $8.1 billion.
The world’s largest oil and gas companies have reported bumper profits in recent months, benefiting from higher commodity prices in the wake of Russia’s invasion of Ukraine.
Together with BP, the major oil companies coincidenceAnd the total energyAnd the Exon And the chevron It reported third-quarter earnings totaling about $50 billion.
This has renewed invitations to higher taxes On record profits for oil companies, especially at a time when rising gas and fuel prices have fueled inflation around the world.
On Monday, US President Joe Biden called on the major oil companies to stop “Profiting from warHe threatened higher taxes if the industry giants did not lower gas prices.
Oil and gas industry groups have previously condemned calls for an unexpected tax, warning that it would fail to resolve soaring energy prices and could eventually discourage investment.
“This quarter’s results reflect our continued performance during the transition,” BP CEO Bernard Looney said in a statement.
“We remain focused on helping solve the energy conundrum – safe, affordable, low-carbon energy. We deliver the oil and gas the world needs today – while at the same time – investing to accelerate the energy transition,” Looney said.
London-listed BP shares are up nearly 1% during morning trades. The company’s stock price is up over 45% since the beginning of the year.
A windfall tax ‘now a necessity’
Environmental campaign groups said BP’s third-quarter results underscored the need for an unexpected tax, describing the results as a “slap in the face” for millions of Britons facing a deep cost-of-living crisis.
“The argument for a bigger and bolder windfall tax is now overwhelming,” said Sana Youssef, an energy activist for Friends of the Earth. “This silly loophole undermining the tax should be addressed by enabling companies to pay the bottom line if they invest in more global warming gas and oil projects.”
“Some of the billions of pounds raised should be used to pay for the street-by-street home insulation program to lower energy bills and reduce emissions,” Yousef said.
Burning fossil fuels, such as coal, oil and gas, is The main driver of the climate crisis.
“A windfall tax on the profits of big polluters is no longer out of reach, it is now a necessity,” said Jonathan Noronha-Gant, senior fossil fuel activist at Global Witness.
“But the new UK government must also urgently put us on the right track for a rapid transition away from dirty fossil fuels to renewables and decent home insulation, so we can fix the malfunctioning power system once and for all.”
Our job is to “pay our taxes”
Speaking at the ADIPEC conference in the UAE on Monday, BP CEO Bernard Looney said in a session moderated by CNBC that he understands the public scrutiny of record profits for oil majors, but has sought to defend the company’s track record when it comes to investing and paying taxes.
“We are having a very difficult winter in the UK, Europe and all over the world,” said Looney.
“Our job is to pay our taxes; our job is to invest. We just Announced a $4 billion acquisition In the US just last week in the area of renewable natural gas, that’s what we have to do. We will continue to do so and do our best.”
“Twitteraholic. Total bacon fan. Explorer. Typical social media practitioner. Beer maven. Web aficionado.”