BP profits hit record £23BILLION in 2022 while energy bills soared

BP profits hit record £23BILLION in 2022 while energy bills soared
Andrew Milligan
Dan Falvey

By Dan Falvey

Published: 07/02/2023

- 07:27

Updated: 07/02/2023

- 07:47

BP has promised extra investment to keep affordable energy flowing

BP has reported record profits for last year after gas prices spiked in the aftermath of Russia's invasion of Ukraine.

The oil giant announced that it have seen underlying profit more than double to £23billion in 2022.

Following the results, the company said that it would invest an additional £6.6billion each in the energy transition, and in oil and gas to keep affordable energy flowing.

BP chief executive Bernard Looney said: “We are strengthening BP, with our strongest upstream plant reliability on record and our lowest production costs in 16 years, helping to generate strong returns and reducing debt for the 11th quarter in a row.

“Importantly, we are delivering for our shareholders – with buybacks and a growing dividend.

“This is exactly what we said we would do and will continue to do – performing while transforming.”

Following sanctions imposed on Russia as a result of Vladimir Putin's barbaric war last February, the price of Brent crude oil reached nearly $128 (£106). That has since fallen back to about $80 (£66.50).

Gas prices also spiked before falling slightly from their highs.

At the same time Britain has seen household energy bills skyrocket. Average annual energy bills were about £1,250 in the winter of 2021-22 but the typical household now pays about £2,500 a year.

The cost is set to rise again to £3,000 a year from April.

Responding to the profits, Labour has demanded the Government to bring forward a “proper” windfall tax on energy companies.

Last year the Government announced one off tax on the profits of energy firms, but the Opposition has argued it does not go far enough.

Shadow climate secretary Ed Miliband said: “It’s yet another day of enormous profits at an energy giant, the windfalls of war, coming out of the pockets of the British people.

“What is outrageous is that as energy giants rake in these sums, Rishi Sunak still refuses to bring in a proper windfall tax.

“This is why people are sick and tired of the way the country is run under the Tories.

“In just eight weeks time, the Government plans to allow the energy price cap to rise to £3,000. Labour would use a proper windfall tax to stop prices going up in April.”

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