November 30, 2022

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BP posts $8.2 billion quarterly profit as oil majors post another bumper round of profits

BP posts $8.2 billion quarterly profit as oil majors post another bumper round of profits

BP’s shares are up more than 45% since the start of the year.

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Oil and gas giant BP On Tuesday, it reported stronger-than-expected third-quarter earnings, buoyed by higher commodity prices and strong gas marketing and trading.

The major British energy company reported a base replacement cost profit, used as a proxy for net profit, of $8.2 billion for the three months to the end of September. This is compared to $8.5 billion in the previous quarter, which represents a significant increase from the previous year, when the net profit came at $3.3 billion.

Analysts polled by Refinitiv expected third-quarter net profit to reach $6 billion.

BP announced another $2.5 billion in share buybacks, and said net debt had fallen to $22 billion, down from $22.8 billion in the second quarter.

It posted a net loss for the quarter of $2.2 billion, compared to a profit of $9.3 billion in the previous quarter. BP said its third-quarter results included inventory holding losses net of tax of $2.2 billion and item adjustment fees net of tax of $8.1 billion.

The world’s largest oil and gas companies have reported bumper profits in recent months, benefiting from higher commodity prices in the wake of Russia’s invasion of Ukraine.

Together with BP, the major oil companies coincidenceAnd the total energyAnd the exon And the chevron It reported third-quarter earnings totaling about $50 billion.

This has renewed invitations to higher taxes On record profits for oil companies, especially at a time when rising gas and fuel prices have fueled inflation around the world.

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On Monday, US President Joe Biden called on the major oil companies to stop “Profiting from warHe threatened higher taxes if the industry giants did not lower gas prices.

Oil and gas industry groups have previously condemned calls for an unexpected tax, warning that it would fail to resolve soaring energy prices and could eventually discourage investment.

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“This quarter’s results reflect our continued performance during the transition,” BP CEO Bernard Looney said in a statement.

“We remain focused on helping solve the energy conundrum – safe, affordable, low-carbon energy. We deliver the oil and gas the world needs today – while at the same time – investing to accelerate the energy transition,” Looney said.

London-listed BP shares are up nearly 1% during morning trades. The company’s stock price is up over 45% since the beginning of the year.

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