BP records £23,000,000,000 profits in a year after energy prices soared

BP has reported profits of $27.7 billion (£23billion) over the last 12 months.

The oil giant’s profits have doubled in the last year compared with $12.8bn the year before.

Other energy firms have seen similar rises, with Shell reporting record profits of nearly $40bn last week.

The profits have led to calls for energy firms to pay more tax with households facing rising bills.

Both BP and Shell suffered big losses during the COVID pandemic in 2020 and raised energy costs due to a lack of demand.

But the recovery in oil and gas prices since – latterly guided by Russia’s war in Ukraine – has prompted national governments including the UK to impose windfall taxes on the sector.

BP had earlier forecast a 2022 UK windfall tax sum of around £678m but its results statement suggested the figure had risen to £1.8bn.

Bernard Looney, chief executive officer for BP said: ‘Throughout 2022, bp continued to focus on delivery of our Integrated Energy Company strategy.

‘We are helping provide the energy the world needs today and – at the same time – investing with discipline into our transition and the energy transition – as demonstrated by the Archaea Energy acquisition.

‘We are strengthening bp, with our strongest upstream plant reliability on record and our lowest production costs in 16 years, helping to generate strong returns and reducing debt for the 11th quarter in a row.

‘Importantly, we are delivering for our shareholders – with buybacks and a growing dividend. This is exactly what we said we would do and will continue to do – performing while transforming.’

Tessa Khan, executive director of Uplift -a charity campaigning for a fossil-free UK said: ‘It’s unconscionable that companies like BP can make this kind of money, while at the same time pensioners are having their homes broken into because they can’t afford their gas bill.

‘These are profits that BP is taking from us in higher energy and fuel bills. It is grossly unfair. The UK’s energy system isn’t just broken, it’s inhumane.

‘This government needs to get a grip and fix this now, starting by taxing these profits properly. Rishi Sunak must immediately close the £11 billion loophole that he introduced the windfall tax.

‘Then he needs to get on with insulating the UK’s draughty homes, and ramping up cheaper, homegrown renewables, which we have in abundance, so that we can be free from oil and gas – and this kind of profiteering – for good.’

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