BP underlying profit soars on higher oil and gas prices

BP underlying profit soars on higher oil and gas prices

BP PLC on Tuesday said underlying replacement profit more than doubled in 2022 and was hight in the fourth quarter, in line with increasing natural gas and oil sales from rising prices.

The London-based oil major said 2022 underlying replacement cost profit was USD27.65 billion, multiplying from USD12.82 billion in 2021, or to USD46.04 billion from USD22.34 billion before interest and tax.

This was underpinned by rising underlying pretax RC profit in gas and low carbon energy to USD16.06 billion from USD7.53 billion, and to USD20.22 billion from USD10.29 billion in oil productions and operations.

In the three months that ended December 31, underlying pretax RC profit was up 32% USD9.32 billion from USD7.05 billion a year earlier; for gas and lower carbon energy, it rose 43% to USD3.15 billion from USD2.21 billion; and for oil production and operations, it was up 10 to USD4.43 billion from USD4.02 billion.

Across the full year, BP’s performance soared, owing to rising natural gas and oil prices across the year.

For all of 2022, sales and other operating revenue was USD241.39 billion, up 53% from USD157.74 billion in 2021, while pretax profit ticked down to USD18.04 billion from USD18.08 billion, due to a net impairment and losses on sale of businesses and fixed asset, as well as higher purchases and other expenses.

Looking ahead, BP said it expects oil prices to be supported by recovering demand from China. For gas prices, BP said the outlook depends on the pace of Chinese demand recovery and weather in the Northern Hemisphere

BP also declared a quarterly dividend of 6.61 US cents per share, up 21% from 5.46 cents, taking its 2022 total dividend to 24.082 cents, rising 11% from 21.630 cents.

Shares in BP were up 3.1% to 493.16 pence each in London on Monday morning.

Published: 07-02-2023