BP profit hits $28 bln, fuels windfall tax calls

STORY: BP reported record profits on Tuesday (February 7).

The UK oil giant saw annual earnings of $28 billion in 2022.

It was boosted by the surge in energy prices since the start of conflict in Ukraine.

In a sign of confidence it’s now boosting its dividend to shareholders by 10%.

The firm also plans to buy back billions more shares.

However, the final quarter of the year did see some headwinds.

BP was hit by weaker revenues from gas trading, after an “exceptional” result in the previous quarter.

It also faced lower oil and gas prices, and higher costs for maintaining its refineries.

Even so, BP’s results follow equally record-breaking figures from rivals Exxon Mobil and Shell.

And that seems sure to spur calls for more windfall taxes on the sector.

The company also adjusted its plans for a green energy transition.

It now expects to produce 2 million barrels of oil per day by 2030 - that’s down on 2019 levels, but a smaller cut than previously planned.

BP will also increase spending on its oil and gas business by $1 billion per year.

Shares in the firm were up over 3.5% in early trade following the record results.