BP posts record annual profit

British energy giant BP announced a record profit for 2022 thanks to soaring oil and gas prices, as it watered down its target for cutting carbon emissions.

BP's underlying profit more than doubled to a record US$27.7 billion last year.

That mirrors huge gains by its rivals thanks to the jump in oil and gas prices following the attack by major energy producer Russia on neighbouring Ukraine.

But BP's exit from its 19.75% stake in Russian energy group Rosneft cost it more than US$24 billion.

That pushed it into a loss after tax totalling US$2.5 billion last year, compared with net profit of US$7.6 billion in 2021.

EMISSIONS TARGET

BP also said its carbon emissions would not fall as quickly as anticipated, triggering fresh anger from green groups.

The company expects carbon emissions from oil and gas production to fall by between 20-30% over the 11 years to 2030.

This compared with its prior forecast for a drop of 25-40%.

"We need continuing near-term investment into today's energy system - which depends on oil and gas - to meet today's demands and to make sure the transition is an orderly one," said chief executive Bernard Looney.

"We will prioritise projects where we can deliver quickly, at low cost, using our existing infrastructure, allowing us to minimise additional emissions and maximise both value and our contribution to energy security and affordability."

Environmentalists hit out the strategy update, with Greenpeace UK's head of climate justice, Kate Blagojevic, saying it was "time to stop drilling and start making polluters... pay the price for the climate damage they are causing all around the world".

SOARING BILLS

The record profits come as consumers face soaring heating and electricity bills, which has triggered widespread calls for energy majors to pay more tax to ease a cost-of-living crisis.

In the UK, unions and members of the opposition Labour party again called on the Conservative government to increase its windfall tax on the likes of BP and British rival Shell.

"As millions struggle to heat their homes and put food on the table, BP are laughing all the way to the bank," said Paul Nowak, general secretary of the Trades Union Congress.

"Ministers are letting big oil and gas companies pocket billions in excess profits. But they are refusing to give nurses, teachers and other key workers a decent pay rise."

Britain is facing its biggest strikes in more than a decade as public and private sector workers demand that pay increases go some way to matching sky-high inflation. – Fin24/AFP