BP’s profit more than doubled in the third quarter, extending a bumper range of profits for the largest company in the world Oil and gas companies It will add to the growing calls in Britain and the United States for higher taxes on unexpected profits.
The UK based energy company Reported underlying profit of $8.15 billion in the July-September periodAnd the Compared to $3.3 billion a year ago. BP said in a statement on Tuesday that profits were boosted by “exceptional” results in the gas trading.
The result means that Big Oil – BP
(TOT)Energies, ExxonMobil and Chevron
(CVX) Generated more than $58 billion in profits for the third quarter alone. The record gains come amid mounting pressure from households in Europe and North America from decades of soaring inflation driven by soaring energy and food bills.
In the meantime, shareholders benefit greatly. BP said it will use the excess cash to buy back $2.5 billion in stock, bringing the total share buybacks this year to $8.5 billion. Shell has spent $18.5 billion on share buybacks this year, and has paid dividends on top of that.
“We remain focused on helping solve the energy dilemma – safe, affordable, low carbon energy,” BP CEO Bernard Looney said in a statement. “We are providing the oil and gas the world needs today, while at the same time investing to accelerate the energy transition,” he added.
Energy companies have posted record profits this year on the back of high oil prices and Natural gas prices are linked to Russia’s war in Ukraine.
Last week, Shell reported profits of more than $30 billion for the first nine months of the year — a 58% increase over the full year of 2021, while ExxonMobil posted record profits for the second consecutive quarter.
The unprecedented set of profits is fueling renewed calls in Britain and the United States for windfall taxes on energy companies to help families struggling to pay rising bills.
On Monday, President Joe Biden accused energy companies of “war profiteering” and said that if they did not “act beyond their narrow personal interest” and “give the American people a break” they would pay “a higher tax on their excess profits and face higher restrictions.”
Biden has not explicitly endorsed an unexpected tax, and details of what he might consider to be a tax will likely remain vague, but key congressional Democrats have pushed various unexpected tax proposals targeting oil companies for more than a year.
In the UK, Ed Miliband, the opposition Labor Party’s spokesperson on climate change, said on Twitter That BP’s profits are “irrefutable evidence” of the failure of the ruling Conservative Party to impose a “appropriate earnings tax”.
Miliband said last week that Shell’s massive quarterly profit was “further evidence that we need a proper windfall tax to get energy companies to pay their fair share.”
The UK government imposed a 5 billion pound ($5.8 billion) tax on oil and gas companies’ windfall profits in May, but has so far rejected calls to extend it, although Finance Minister Jeremy Hunt has said he is not opposed to it in principle and that it Nothing is off the table. Meanwhile, EU governments approved an unexpected tax in September that they hope to raise $140 billion.
Ben van Beurden, Shell’s chief executive, who will step down at the end of this year, told reporters last week that the industry should reach out to officials to ensure these taxes are well designed.
“We must prepare and accept that our industry is being considered for raising taxes in order to fund remittances for those who need them most in these difficult times,” he said.
BP said it expects oil prices to remain elevated in the fourth quarter due to the recent OPEC+ production cuts and “ongoing uncertainty associated with Russian oil exports”. It also expects gas prices to remain “high and volatile” due to supply shortages in Europe “with the outlook largely dependent on Russian pipeline flows or other supply disruptions.”
Saudi Aramco, the world’s largest oil and gas company, posted a 39% year-over-year gain in third-quarter profit to $42.4 billion on Tuesday.
“While global crude oil prices during this period have been affected by continued economic uncertainty, our long-term view is that oil demand will continue to grow for the rest of the decade given the world’s need for more reliable and affordable energy,” said CEO Amin H. Nasir said in a statement.
Phil Mattingly, Betsy Klein, Nikki Carvajal, and Megan Vasquez contributed to the report.
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