BP racks up colossal profits in Q1 amid struggling households

By Al Mayadeen English
Source: News websites
2 May 2023 16:22
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BP's colossal profits have caused the revival of a debate on the implementation of a tougher windfall tax on the profits of oil companies.

The logo of British Petroleum BP is seen at a petrol station in Pienkow, Poland, June 8, 2022. (Reuters)

$5 billion is the sum that British Petroleum outrageously made in profits for this year's first quarter, exceeding projections by far as it rode the highly competitive wave of oil and gas trading along with rivals Exxon Mobil and Chevron.

After tax documents showed BP recorded its best start to the year, Britons had a lot to say in response to these numbers. The Guardian reports that the oil giant's profits have been called "heinous" as people renewed calls to bring in a proper windfall tax.

Initial forecasts estimated that the company would generate $4.3bn in profits in the first quarter. But the current results now reflect the second-best results for the first quarter since 2012, when it recorded $4.7bn in Q1, while the best result was recorded last year at $6.2bn.

According to BP, the results were the outcome of reduced refining costs and a "very strong oil trading result." Oil price volatility was also a key factor in increased revenues.

BP said it would reward investors, vowing buybacks worth $1.75bn of its own shares, a slight falloff compared to the $2.75bn bought in the previous quarter, causing shares to fall almost 4% on Tuesday on the FTSE 100 as a result of the slowdown.

This has sparked the revival of a debate on the implementation of a tougher windfall tax on the profits of oil companies.

After weeks of inflammatory language from politicians and right-wing media personalities, a car has finally rammed into a peaceful protest. pic.twitter.com/9YyPgvPmWl
— Just Stop Oil (@JustStop_Oil) May 2, 2023

According to Paul Nowak, the TUC general secretary, oil and gas companies were treating the British public "like cash machines."

"These eye-watering profits are an insult to working families as millions struggle with sky-high bills. The government has left billions on the table by refusing to impose a proper windfall tax on the likes of BP. And even now ministers are refusing to take action to fix our broken energy market and stop this obscene price gouging," he said.

"We could have lower household bills and an energy system that served the public, if government taxed excessive profits, introduced a social tariff and created public ownership of new clean power," he added.

Global Justice Now said: "Today’s heinous profits from BP are another kick in the teeth to the millions of people who can’t afford to heat their homes."

BP has just announced profits of £4 billion for the last quarter + a new round of share buybacks, transferring £1.4 billion ($1.75 billion) to shareholders.@evansjoseph_ says BP are "driving up prices and profits" at the expense of households. pic.twitter.com/w2pCWxRZEx
— IPPR (@IPPR) May 2, 2023