British energy major BP on Tuesday announced a staggering $8.2 billion for the quarter ending September, according to a report in CNBC. The stronger-than-expected profits were supported by high commodity prices and robust gas marketing and trading. BP posted the results of underlying replacement cost profit, used as a replacement cost benefit. The result showed a marked increase from $3.3 billion a year earlier and outstripped market expectations of $6.1 billion. London-listed BP, flush with cash, also revealed a $2.5-billion share buyback but its stock slid in morning deals.
BP declared its results at a time when environmentalists and politicians across the globe are calling for stiffer windfall taxes for energy producers at a time when consumers in the UK are getting ready to pay more for gas and electricity.
Combined with other oil majors like Shell, TotalEnergies, Exxon and Chevron, the quarterly profits surged to $50 billion, the CNBC report further said.
The BBC said in its report that the windfall tax was introduced by Rishi Sunak in May this year when he was the chancellor of exchequer of the UK.
“Rishi Sunak should be hanging his head in shame that he has left billions of windfall profits in the pockets of oil and gas companies, while the British people face a cost-of-living crisis,” the outlet quoted British politician and Shadow Secretary of State for Climate Change Ed Miliband as saying.
US President Joe Biden had on Monday said that he plans to seek tax penalties for oil companies unless they invest their record profits in lowering consumer costs and boosting production, criticising their “war profiteering.”
“Their profits are a windfall of war,” Mr Biden told reporters.
The US President said that companies have a “responsibility to act” beyond the narrow self-interest of executive shareholders, and to help consumers by raising production and their refining capacity.
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