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BP rakes in quarterly profit of $8.2 billion as oil majors post another

Shares of BP are up over 45% year-to-date.

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Oil and gas giant BP on Tuesday reported stronger-than-expected third-quarter profit, supported by high commodity prices and robust gas marketing and trading.

The British energy major posted underlying replacement cost profit, used as a proxy for net profit, of $8.2 billion for the three months through to the end of September. That compared with $8.5 billion in the previous quarter and marked a significant increase from a year earlier, when net profit came in at $3.3 billion.

Analysts polled by Refinitiv had expected third-quarter net profit of $6 billion.

BP announced another $2.5 billion in share repurchases and said net debt had been reduced to $22 billion, down from $22.8 billion in the second quarter.

It reported a net loss for the quarter of $2.2 billion, compared with a profit of $9.3 billion in the previous quarter. BP said this third-quarter result included inventory holding losses net of tax of $2.2 billion and a charge for adjusting items net of tax of $8.1 billion.

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The world’s largest oil and gas majors have reported bumper earnings in recent months, benefiting from surging commodity prices following Russia’s invasion of Ukraine.

Combined with BP, oil majors Shell, TotalEnergies, Exxon and Chevron have posted third-quarter profits totaling nearly $50 billion.

This has renewed calls for higher taxes on record oil company profits, particularly at a time when surging gas and fuel prices have boosted inflation around the world.

U.S. President Joe Biden on Monday called on oil majors to stop “war profiteering” and threatened to pursue higher taxes if industry giants did not work to cut gas prices.

Oil and gas industry groups have previously condemned calls for a windfall tax, warning it would fail to resolve a sharp upswing in energy prices and could ultimately deter investment.

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“This quarter’s results reflect us continuing to perform while transforming,” BP CEO Bernard Looney said in a statement.

“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,” Looney said.

Shares of London-listed BP rose nearly 1% during morning deals. The company’s stock price is up more than 45% year to date.

Windfall tax ‘now a necessity’

Environmental campaign groups said BP’s third-quarter results underscored the need for a windfall tax, describing the results as “a slap in the face” for the millions of Britons facing a deepening cost-of-living crisis.

“The case for a bigger, bolder windfall tax is now overwhelming,” said Sana Yusuf, energy campaigner at Friends of the Earth. “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.”

“Some of the billions of…

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BP rakes in quarterly profit of $8.2 billion as oil majors post another

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