BP’s profits have doubled to $ 6.2 billion, spurring energy storm tax demands. BP

BP’s profits more than doubled to $ 6.2 billion (£ 5 billion) in the first three months of the year. This is the highest quarterly profit in more than a decade, supported by soaring oil and gas prices.

Analysts expect $ 4.5 billion, and increased profits have renewed campaigners’ demands on oil and gas companies for a storm tax.

Campaign participants claim that the money raised by taxes can be used to ease the burden on those most hit by the crisis of living expenses.

Prime Minister Rishi Sunak for the first time last week Storm tax was possible If the energy company does not properly reinvest the bumper’s profits. But Tuesday morning, Boris Johnson opposed such taxes.

“If we were to impose a storm tax on energy companies, that would mean discouraging them from making the investment we wanted, which would ultimately keep everyone’s energy prices low. . ” The Prime Minister told ITV’s Good Morning Britain on tuesday.

But when BP CEO Bernard Looney was asked by the Times which of the planned £ 18 billion UK investments would be reduced if a storm tax were levied. , Said: “

Workers seized remarks with Shadow Energy Secretary Edward Miliband. Tweet: “The entire government proceedings against the storm tax are now exposed to BP bosses as none other than fake. He himself says it doesn’t affect investment. He’s right, of their storm. Profit goes primarily to buy back shares. The government has run out of excuses. ”

Looney told reporters that the war in Ukraine increased living costs, which “created a terrible situation for many people around the world.” He said BP was “Trilemma It provides cleaner, more reliable and affordable energy. “

He estimates that one million barrels of Russian oil per day has been removed from the market, doubling this month under existing sanctions, even before the EU decides to embargo on German-backed oil. There is a possibility.

BP has announced a $ 2.5 billion share buyback program against the backdrop of bumper profits. Looney promised that the company would buy back at least $ 1 billion in shares quarterly while oil prices were above $ 60 a barrel. The war in Ukraine has driven the global benchmark Brent crude. $ 100 or more per barrel..

The company also plans to invest up to £ 18 billion in the UK energy system by the end of 2030, including an offshore wind project in the Irish Sea and a £ 1 billion electric vehicle in partnership with German energy company EnBW. He said it would include a charging point. BP is raising its investment from 10% -15% of capital to 15% -20%.

The UK oil group made a profit on the underlying replacement cost of $ 6.2 billion between January and March. This is the largest quarterly figure since the fall of 2008, compared to $ 2.6 billion in the same quarter last year. This was the result of an “exceptional oil and gas transaction”, higher prices and better refining results. Shares rose 5.8% on Tuesday, making BP the biggest rise on the FTSE 100.

Frances O’Grady, General Secretary of TUC, said: The government must stop making excuses and impose a storm tax. “

Liberal Democratic Party leader Ed Davy said he couldn’t introduce a storm tax. Boris Johnson At the time of the national crisis. “

BP wrote down the value of its business in Russia and reported quarterly headline losses of $ 20.4 billion, including the resulting $ 24 billion invoice. The company also incurred $ 1.1 billion in deferred tax liabilities in connection with Russian withholding tax on BP shares. Russian state-owned energy company Rosneft Profit.

Sign up for your daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk.

Rooney said: “In a quarter dominated by tragic events in Ukraine and fluctuations in the energy markets, BP has focused on supplying the reliable energy customers need, holding a stake in Rosneft. The February decision to terminate incurred significant non-cash costs and headline losses reported today. “

BP, along with rival Shell, announced in late February that it would offload Rosneft’s 19.75% stake, succumbing to pressure from the British government to break relations with Russia after the invasion of Ukraine. Two BP directors resigned from the Rosneft board on the same day.

BP said Western sanctions on Moscow meant that Rosneft’s stake was “currently unable to estimate non-zero values” and could seek to sell back to Rosneft at a significant discount. Stated.

BP’s profits have doubled to $ 6.2 billion, spurring energy storm tax demands. BP

Source link BP’s profits have doubled to $ 6.2 billion, spurring energy storm tax demands. BP

Back to top button