£23bn …. BP follows Shell in achieving record annual profits

Oil and gas giant BP has announced record annual profits, adding fuel to the fire in the debate over windfall taxes for big energy companies.

The UK-based firm revealed that its main performance indicator, underlying replacement cost profit, came in at $27.7bn (£23bn) for 2022, more than double the previous year’s sum.

This figure was achieved despite weaker oil and gas prices affecting the company’s performance in the final quarter of the year.

BP’s profits come hot on the heels of similar results from rival Shell, which revealed a yearly profit of $18.7bn earlier this month.

Both firms suffered big losses during 2020 as the pandemic hit energy costs due to a lack of demand.

The results will reignite calls for major oil and gas companies to contribute more to society through windfall taxes, as the cost of living crisis driven by the energy sector continues to cause widespread concern.

BP chief executive Bernard Looney said: “It’s clearer than ever after the past three years that the world wants and needs energy that is secure and affordable as well as lower carbon – all three together, what’s known as the energy trilemma.”

“To tackle that, action is needed to accelerate the transition. And – at the same time – action is needed to make sure that the transition is orderly, so that affordable energy keeps flowing where it’s needed today.”

“As an integrated energy company, bp is very deliberately set up to help on both counts. With three years of delivery and track record – we have increased confidence our strategy is working.”

“With today’s announcement we are leaning further in. We are growing our investment into our transition and, at the same time, growing investment into today’s energy system.”

“In doing so – we see tremendous opportunity to create value. And it’s what governments and customers are asking of companies like us.”