BP profits double due to soaring oil and gas prices

It comes week after Shell announced it had doubled profits from same quarter last year

Zoe Tidman
Tuesday 01 November 2022 10:34 GMT
BP profits double due to rising oil and gas prices amid cost of living crisis

BP has revealed its profits have more than doubled over the past quarter as gas and oil prices continue to soar.

The oil giant reported that underlying replacement cost profits - a measure preferred by BP - had surged to $8.2 bn (£7.1 bn) compared with $3.3bn (£2.9bn) a year earlier.

The announcement has sparked renewed calls for a higher windfall tax on oil and gas giants as soaring energy prices continue to put pressure on the public.

Business minister and Cop26 president Alok Sharma said: “We need to raise more money from a windfall tax on oil and gas companies and actively encourage them to invest in renewables.”

The profits announced by BP on Tuesday were significantly ahead of the $6.1bn (£5.3bn) expected by market analysts.

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Nevertheless, the energy giant said profits were weaker than the previous quarter - which were the second best in its history - after average oil prices went back down.

Higher profits of $8.5bn were recorded in the period between April and June after a huge jump in oil prices.

Bernard Looney, BP’s chief executive, said the results showed the company was “continuing to perform while transforming”.

He added: “We are providing the oil and gas the world needs today - while at the same time investing to accelerate the energy transition.”

It comes on the back of other energy giants reporting soaring profits.

The energy giant reported its third quarter results on Tuesday (Andrew Milligan/PA)

Last week, Shell said it recorded profits of £8bn in the latest quarter, double those for the same period as last year.

TotalEnergies also reported its net income rose to $6.6bn (£5.7bn) despite losses from pulling out of a venture in Russia.

Sana Yusuf, of environmental group Friends of the Earth, said on Tuesday: “With the economy sinking, energy bills soaring and the climate crisis deepening, Rishi Sunak must surely act on the excessive profits that fossil fuel firms like BP are raking in.”

Its energy campaigner said: “The case for a bigger, bolder windfall tax is now overwhelming.

“This must address the ridiculous loophole that undermines the levy by enabling companies to pay the bare minimum if they invest in more planet-warming gas and oil projects.”

Earlier this week, the UK’s outgoing climate minister called for the windfall tax to be expanded on “excessive” oil profits.

Labour also called for a higher windfall tax after Shell’s profits were announced last week.

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