BP posts record annual profit, waters down green target | Business

A view of the BP logo near the top of the BP Exploration Alaska headquarters.

British energy giant BP on Tuesday announced a record profit for 2022 thanks to soaring oil and gas prices, as it watered down its target for cutting carbon emissions.

BP’s underlying profit more than doubled to a record $27.7 billion last year.

That mirrors huge gains by its rivals thanks to the jump in oil and gas prices following the attack by major energy producer Russia on neighbouring Ukraine.

But BP’s exit from its 19.75-percent stake in Russian energy group Rosneft cost it more than $24 billion.

That pushed it into an loss after tax totalling $2.5 billion last year, compared with net profit of $7.6 billion in 2021.

– Emissions target –

BP on Tuesday also said its carbon emissions would not fall as quickly as anticipated, triggering fresh anger from green groups.

The company expects carbon emissions from oil and gas production to fall by between 20-30 percent over the 11 years to 2030.

This compared with its prior forecast for a drop of 25-40 percent.

“We need continuing near-term investment into today’s energy system — which depends on oil and gas — to meet today’s demands and to make sure the transition is an orderly one,” said chief executive Bernard Looney.

“We will prioritise projects where we can deliver quickly, at low cost, using our existing infrastructure, allowing us to minimise additional emissions and maximise both value and our contribution to energy security and affordability.”

Environmentalists hit out the strategy update, with Greenpeace UK’s head of climate justice, Kate Blagojevic, saying it was “time to stop drilling and start making polluters… pay the price for the climate damage they are causing all around the world”.

– Shareholders boosted –

The record profits come as consumers face soaring heating and electricity bills, which has triggered widespread calls for energy majors to pay more tax to ease a cost-of-living crisis.

In the UK, unions and members of the opposition Labour party again called on the Conservative government to increase its windfall tax on the likes of BP and British rival Shell.

“As millions struggle to heat their homes and put food on the table, BP are laughing all the way to the bank,” said Paul Nowak, general secretary of the Trades Union Congress.

“Ministers are letting big oil and gas companies pocket billions in excess profits. But they are refusing to give nurses, teachers and other key workers a decent pay rise.”

Britain is facing its biggest strikes in more than a decade as public and private sector workers demand that pay increases go some way to matching sky-high inflation.

Markets cheered BP’s record underlying profits — and huge fourth-quarter net earnings that came in at almost $11 billion.

BP’s shares jumped more than three percent, rising to the top of the gainers board on London’s top-tier FTSE 100 index.

While energy majors have seen their coffers swell thanks to rising oil prices, they have passed on large parts to shareholders in the form of dividend hikes and share buybacks.

BP said its fourth-quarter dividend would rise 10 percent and announced a fresh buyback totalling $2.75 billion.