BP’s profits doubled to $ 6.2 billion (£ 5 billion) in the first three months of the year, the highest quarterly profit in more than a decade, helped by rising oil and gas prices.
That was more than analysts expected $ 4.5 billion and sparked renewed calls for an unforeseen tax on oil and gas companies by activists who say the money raised could be used to ease the burden on those most affected by the cost of living. .
Last week, Chancellor Rishi Sunak hinted for the first time that an unforeseen tax was possible if energy companies did not reinvest large profits properly. However, Boris Johnson challenged such a tax on Tuesday morning.
“If you impose an unforeseen tax on energy companies, it means that you are discouraging them from making the investments we want to see that will ultimately keep energy prices lower for everyone,” Johnson told ITV.
Francis O’Grady, secretary general of the TUC, said the profits were “indecent” at a time when so many households were struggling to cope with growing bills.
“At a time when households across the UK are overwhelmed by rising bills and prices, these profits are indecent,” she said. “The government must stop justifying itself and imposing an unforeseen tax on oil and gas companies.
BP has announced a $ 2.5 billion share buyback program amid big profits. CEO Bernard Looney has promised that the company will repurchase at least $ 1 billion in shares each quarter, while oil prices are above $ 60 a barrel. The war in Ukraine brought Brent oil, the global benchmark, over $ 100 a barrel.
The company also said it intends to invest up to £ 18bn in the UK’s energy system by the end of 2030, including offshore wind projects in the Irish Sea in partnership with German energy firm EnBW and £ 1bn in refueling points. of electric vehicles.
The UK oil group made a major replacement profit of $ 6.2 billion between January and March, up from $ 2.6 billion in the same quarter last year. This is due to “exclusive trade in oil and gas”, higher oil prices and better refining results.
Shares rose 3% on Tuesday morning, making BP the second-largest rise in the FTSE 100.
Ed Miliband, the shadow Labor leader and zero secretary, said: “Oil and gas companies can do their job for their company’s shareholders, but the government is reckless in its work for the people of this country.
“Refusing to impose an unforeseen tax to cut energy bills is deeply flawed, unfair and tells you everything you need to know whose country this government is for – and it’s not the British people.
Liberal Democrat leader Ed Davey said: “This is an unforgivable lack of leadership by Boris Johnson during the national crisis. Oil companies are handing out huge dividends and buying back shares. They could easily afford to pay a little more to help the most vulnerable. “
Sunak has been criticized for not doing enough to help low-income households struggling with rising food prices and a 54% jump in energy bills since early April.
Dana Yusuf, an energy campaign for the Friends of the Earth environmental group, said the money raised from the contingency tax could be invested in a national energy efficiency program. “A street-by-street isolation program – aimed first at the most severely affected – will reduce bills, help manage energy demand and improve energy security. With such profits, it would be short-sighted to do less. “
BP recorded the value of its business in Russia and, including the $ 24 billion fee received, reported a base loss of $ 20.4 billion. The company also incurred a $ 1.1 billion deferred tax liability related to Russia’s withholding tax on BP’s share of the profits of Russia’s state-owned energy company Rosneft.
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Luni said: “In a quarter dominated by the tragic events in Ukraine and the instability of energy markets, BP’s focus has been on delivering the reliable energy that our customers need. Our decision in February to leave our stake in Rosneft led to significant non-monetary fees and a loss in the title, which we announced today.
Together with rival Shell, BP has succumbed to pressure from the UK government to sever ties with Russia following its invasion of Ukraine and said in late February that it would land its 19.75% stake in Rosneft. The two BP directors left the Rosneft board the same day.
Due to Western sanctions against Moscow, BP is unable to sell its shares to Rosneft and “it is currently not possible to estimate anything other than zero.”
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