(qlmbusinessnews.com via news.sky.com– Wed, 3rd May, 2023) London, Uk – –
The company says it is “growing distributions” to shareholders as its headline profit number eases between January and March despite a strong oil and gas trading performance.
BP made profits of $5bn (£4bn) in the first quarter of the year, as the rewards for shareholders are being stepped up.
Underlying replacement cost profit between January and March compared to $6.2bn (£5bn) in the same period last year but $4.8bn (£3.9bn) achieved in the previous three months.
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The figure was $700m (£561m) higher than financial analysts had forecast.
The company described it as a resilient result which reflected an “exceptional gas marketing and trading result, a lower level of refinery turnaround activity and a very strong oil trading result”.
BP rewarded shareholders with a 6.6 cents per share dividend payment – up from 5.4 cents a year ago.
The sum was, however, static on the fourth quarter award and BP also scaled back the size of its recent share buybacks to $1.75bn (£1.4bn).
BP revealed details on its current performance as the government continues to face pressure to raise windfall taxes on energy giants to better cover the costs of energy support schemes.
BP paid $700m under the energy profits levy, introduced last May, for its North Sea activities during 2022.
It booked a further charge of $300m between January and March.
Labour argues the taxpayer should not be enduring so much of a burden for record household bills at a time when the likes of BP and Shell are benefiting from soaring prices linked to the war in Ukraine.
Labour leader Sir Keir Starmer has urged the government to ensure oil companies are hit with what he calls a “proper” windfall tax.
For its part, the government says it has to encourage continued investment in UK energy security.
Wholesale natural gas prices have tumbled from the record highs witnessed last year but remain elevated while oil costs are currently reflecting the slowdown in the global economy linked to the inflation problem.
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BP said it expected oil and European gas prices to remain strong by historical standards in the current second quarter.
Its report, which was titled “performing while transforming”, pointed to continued investment in its integrated energy strategy in both the UK and abroad.
In the North Sea, BP has signed an agreement to take a 40% stake in the Viking carbon capture and storage (CCS) project while three BP-led hydrogen and CCS projects in the North East have been chosen by the government to progress to the next stage of development
By James Sillars
