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BP’s revenue doubles to $ 6.2 billion, prompting call for tax on unexpected energy resources | BP


BP’s revenue for the first three months of the year more than doubled to $ 6.2 billion (£ 5 billion), prompting pressure on ministers to impose an unexpected tax to help households struggling with growing energy and fuel bills.

The energy giant has reported its highest quarterly revenue in more than a decade, well above the $ 4.5 billion expected by analysts.

Huge revenues have prompted government demands to introduce a one-time fee from companies that benefit from high oil and gas prices.

Campaigners argue that the money raised from the tax could be used to ease the burden for those most affected by the cost of living crisis.

Last week, Chancellor Rishi Sunak first hinted that Fr. an unexpected tax was possible if energy companies have not properly reinvested large profits. However, on Tuesday morning Boris Johnson opposed such a tax.

“If you impose an unexpected tax on energy companies, it means you’re dissuading them from making the investments we want to see, which will ultimately keep energy prices lower for everyone.” The Prime Minister said on ITV Good Morning Britain.

However, when the Times asked BP CEO Bernard Looney which of the planned British investments of £ 18 billion she would cut if a payroll tax was introduced, he said: ‘There are none that we would not do. ”

Labor caught up with remarks with shadow energy secretary Ed Miliband, tweets: “The whole case of the government against the tax on unexpected income is now exposed by none other than the head of BP. He himself says it will not affect the investment. He is right, their surplus profits go mostly on share buybacks. The government’s excuses are over. ”

Luni told reporters that the war in Ukraine is increasing the cost of living, which “creates a terrible situation for many people around the world.” He said BP is working closely with governments on “trilemma supply cleaner, more reliable and affordable energy ”.

He estimated that one million barrels of Russian oil a day had been withdrawn from the market, and that could double this month under existing sanctions, even before the EU decides on an oil embargo backed by Germany.

BP has announced a $ 2.5 billion share buyback program amid high profits. Looney has promised that the company will buy back at least $ 1 billion in shares each quarter as long as oil prices are above $ 60 a barrel. The war in Ukraine has led to the fact that Brent oil, a world standard, above $ 100 per barrel.

The company also said it intends to invest up to £ 18 billion in the UK energy system by the end of 2030, including offshore wind projects in the Irish Sea in partnership with German energy company EnBW, and £ 1 billion in electricity bills per point. BP increases investment from 10% -15% of capital to 15% -20% of capital.

Between January and March, the British oil group earned a replacement cost of $ 6.2 billion, the highest quarterly figure since autumn 2008, compared to $ 2.6 billion in the same quarter last year. This was the result of “exclusive oil and gas trade”, higher prices and better refining results. Shares closed 5.8% on Tuesday, making BP the biggest increase on the FTSE 100.

Francis O’Grady, Secretary-General of the TUC, said: “At a time when households across the UK are suffering from rising bills and prices, these incomes are indecent. The government must stop justifying itself and introduce a tax on windfall profits. ”

Liberal Democrat leader Ed Davy called the waiver of the income tax “an unforgivable lack of leadership on the part of Boris Johnson during the national crisis. “

BP recorded the value of its business in Russia, and including the resulting cost of $ 24 billion, reported a quarterly loss of $ 20.4 billion, making it the largest ever. The company also incurred a deferred tax liability of $ 1.1 billion due to withholding tax in Russia from BP’s stake Russian state energy company Rosneft. profit.

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Looney said: “In a quarter dominated by tragic events in Ukraine and volatility in energy markets, BP is focused on supplying the reliable energy that our customers need. Our decision to withdraw from Rosneft in February led to significant non-cash costs and losses, which we reported today. “

Together with its rival Shell, BP succumbed to pressure from the British government to sever ties with Russia after the invasion of Ukraine, and in late February said it would get rid of its 19.75% stake in Rosneft. On the same day, two BP directors resigned from Rosneft.

BP said Western sanctions against Moscow mean that “it is currently impossible to estimate a price other than zero” for its stake in Rosneft, which it could try to sell back to Rosneft at a huge discount.

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