×
  • Oil & Gas - News
  • Updated: February 07, 2023

BP Reports Record Earnings For 2022, To Join Big Oil Profit Boom

BP Reports Record Earnings For 2022, To Join Big Oil Profit

As fossil fuel prices increased in the wake of Russia's all-out invasion of Ukraine, oil firm BP on Tuesday reported record annual earnings, more than double the amount made the year prior.

For 2022, the British energy giant reported an underlying replacement cost profit of $27.7 billion, which is a substitute for net profit.

When compared to the prior year, that amount was $12.8 billion.

For the entire year 2022, the net profit forecast by Refinitiv's surveyed analysts was $27.6 billion.

According to BP, the previous yearly profit record was $26.3 billion set in 2008.

BP reported a net profit of $4.8 billion for the fourth quarter, barely exceeding expert projections of $4.7 billion.

Prior to disclosing its first-quarter 2023 results in early May, BP announced an additional $2.75 billion share buyback, which it anticipates completing.

Additionally, it increased the dividend by 10% to 6.61 cents per common share.

The earnings were referred to as "a good set of results" by BP CEO Bernard Looney.

"First of all, I hope you can see a company that is performing well, performing while transforming.

"We had our highest operations reliability in our history, we had the lowest production cost in 16 years so the business itself is running very well," Looney said on Tuesday.

"Secondly, we're leaning into our strategy today.

"We're announcing up to $8 billion more investment into the energy transition this decade and up to $8 billion more into oil and gas in support of energy security and energy affordability this decade," he added.

"And thirdly, it's about making sure we return to our shareholders."

BP disclosed that the net debt for the fourth quarter dropped from $30.6 billion to $21.4 billion when compared to the same period last year.

During early morning trades in London, shares of BP increased by more than 4%.

As a result, BP has joined Big Oil in its profit bonanza.

Rival British company Shell reported its highest-ever yearly profit on Thursday, coming in at roughly $40 billion.

Prior to that, Exxon Mobil, the largest oil company in the United States, announced a $56 billion profit for 2022, a record-breaking sum for the Western oil business. Chevron reported record 2022 profits of $36.5 billion.

Refinitiv data shows that the biggest fossil fuel companies in the West are predicted to have had combined profits of close to $200 billion for the year.

On Wednesday, France's TotalEnergies is expected to release its annual results report.

The enormous size of the earnings has generated calls for greater taxes and reignited criticism of the oil and gas sector.

“People across the country need look no further than their own front door – one of Britain’s own oil companies – which has been making records profit while so many Brits face hardship through no fault of their own,” said Jonathan Noronha-Gant, senior campaigner at advocacy group Global Witness.

“Implementing a windfall tax to aid those struggling financially, paired with a significant increase in renewable energy and home insulation, could be the start of the end to the damaging fossil fuel era, both for people and the planet.

"BP is richer because you’re poorer,” Noronha-Gant said.

John Moore, senior investment manager at RBC Brewin Dolphin, said BP’s record results underpinned the dividend increase and additional share buybacks.

“It’s fair to say that following the period covered by these results the oil price has weakened, while BP is also emphasising its investment in renewables and its commitment to changing how the company operates,” Moore said.

“But, even allowing for these factors, there will inevitably be a backlash against today’s results in the current climate.

"They will only add to calls for political intervention at some point in the near future.”

Related Topics

Join our Telegram platform to get news update Join Now

0 Comment(s)

See this post in...

Notice

We have selected third parties to use cookies for technical purposes as specified in the Cookie Policy. Use the “Accept All” button to consent or “Customize” button to set your cookie tracking settings