Due to high market demand and oil and gas prices, British Petroleum (BP) reported a robust third-quarter earnings result.
The oil company announced a profit of $8.2 billion at replacement cost in September and the preceding three months. BP made $8.5 billion in profits in the previous quarter. But BP management envisioned lower profits because of the crisis. They did, however, surpass projections and outperform expectations. The business only made a profit of about $3.3 billion during the same time last year. The company’s net profit should only be $6 billion, according to Refinitiv analysts.
The company also stated that due to share repurchases totaling $2.5 billion, its debt decreased from $22.8 billion to $22 billion. The net loss for the quarter was $2.2 billion as well. Shares increased by 1% in the morning markets due to BP’s recent upsurge.
Read Also: Russia Rescinds From Grain Export Deal Causing Hike in Wheat and Corn Prices
The increase in gas prices was very advantageous for international oil companies. Due to Russia’s cutbacks in oil exports, market demand and oil prices have increased. For instance, BP, Exxon, Chevron, and TotalEnergies disclosed almost $50 billion in combined earnings. As a result, many have called for higher oil taxes for businesses making record profits due to the gains currently enjoyed by large oil companies.
President Joe Biden warned oil companies that he would raise taxes if they refused to cap or lower oil prices. According to organizations supporting the oil industry, the increased taxes would only result in lower investments and higher oil prices.
“This quarter’s results reflect us continuing to perform while transforming. We remain focused on helping to solve the energy trilemma – secure, affordable and lower carbon energy. We are providing the oil and gas the world needs today – while at the same time – investing to accelerate the energy transition,” said Bernard Looner, the CEO of BP.
Read Also: Mobile Homes Increased in Value this Year, Owners Reluctant to Sell Property
Necessary to increase tax
The demand for a tax on oil companies has grown among environmental groups. They explained that in light of the economic crisis that British citizens are experiencing, companies must lessen oil prices. Results from the third quarter only underscore the need for price reductions.
“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,” explained Friends of the Earth campaigner Sana Yusuf.
“Some of the billions of pounds raised should be used to pay for a street-by-street home insulation program to cut energy bills and reduce emissions,” Yusuf said.
“A proper windfall tax on the profits of big polluters is no longer a far cry; it is now a necessity. But the new U.K. Government must also urgently put us on track for a rapid transition away from dirty fossil fuels and onto renewables and decent home insulation, so we can fix this broken energy system once and for all,” added Jonathan Noronha-Gant, a campaigner from Global Witness.
However, the BP CEO sustained his stance and said, “We are facing a very difficult winter ahead in the U.K., in Europe and across the world. Our job is to pay our taxes; our job is to invest. We just announced a $4 billion acquisition in the United States last week in renewable natural gas, so that’s what our job is to do. We will continue to do that and do the very best that we can.”
Photo Credit: Whitney Curtis