It was more than the $ 4.5 billion expected by analysts, and again sparked calls for an unexpected tax on oil and gas companies from campaigns claiming the money raised could be used to lighten the burden on those most affected. from the cost of living. Chancellor Rishi Sunak hinted last week for the first time that an unexpected tax was a chance if energy companies did not properly reinvest big profits. However, Boris Johnson opposed such a tax on Tuesday morning. “If you impose an unexpected tax on energy companies, it means you are discouraging them from making the investments we want to see that will ultimately keep energy prices lower for everyone,” Johnson told ITV. Frances O’Grady, general secretary of the TUC, said the profits were “obscene” at a time when so many households were struggling to cope with rising bills. “At a time when households across Britain are being forged by rapid bills and prices, these profits are obscene,” he said. “The government must stop making excuses and impose an unexpected tax on oil and gas companies.” BP has announced a $ 2.5 billion profit-sharing plan. CEO Bernard Looney has pledged that the company will repurchase at least $ 1 billion worth of stock every quarter, with oil prices above $ 60 a barrel. The war in Ukraine drove Brent crude oil, the world benchmark, to over $ 100 a barrel. The company also said it planned to invest up to 18 18 billion in the UK energy system by the end of 2030, including offshore wind projects in the Irish Sea in partnership with German energy company EnBW and 1 1 billion in points charging of electric vehicles. The UK oil group made an underperforming replacement profit of $ 6.2 billion between January and March, compared with $ 2.6 billion in the same quarter last year. This is due to “excellent oil and gas trading”, higher oil prices and better refining results. Shares rose 3% on Tuesday morning, making BP the second largest gain in the FTSE 100. Ed Miliband, Labor’s shadow secretary for Climate Change and Clean Zero, said: “Oil and gas companies can do their job for their company shareholders, but the government negligently fails to do the job. for the people of this country. “Refusing to impose an unexpected tax cut on energy bills is profoundly wrong, it’s telling you everything you need to know about which side this government is on – and it’s not the British people.” Liberal Democrat leader Ed Davy said: “It’s an unforgivable lack of leadership by Boris Johnson in a time of national crisis. Oil companies distribute huge dividends and buy shares. “They could easily afford to pay a little more to help the most vulnerable.” Sunak has been criticized for not doing enough to help low-income households struggling with rising food prices and a 54% jump in energy bills since early April. Dana Yusuf, an energy campaigner for the Friends of the Earth environmental group, said the money raised from an unexpected tax could be invested in a national energy efficiency program. “A roadside insulation program – targeting those hardest hit first – would reduce bills, help manage energy demand and improve energy security. With such profits, it would be short-sighted to do anything less. “ BP recorded the value of its business in Russia, and including the resulting $ 24 billion loss, reported a total loss of $ 20.4 billion. The company also suffered a $ 1.1 billion in deferred tax liability related to the Russian withholding tax on BP’s share of the profits of Russian state-owned energy company Rosneft. Subscribe to the Business Email daily email or follow the Guardian Business on Twitter at @BusinessDesk Looney said: “In a quarter dominated by the tragic events in Ukraine and the instability in the energy markets, BP has focused on providing the reliable energy our customers need. “Our decision in February to withdraw from Rosneft resulted in significant cashless losses and the losses we reported today.” Together with rival Shell, BP succumbed to pressure from the British government to sever ties with Russia following its invasion of Ukraine and said in late February it would divest 19.75% of its stake in Rosneft. The two BP executives resigned from Rosneft’s board the same day. Due to Western sanctions against Moscow, BP is unable to sell Rosneft’s stake and “it is currently not possible to estimate any value other than zero”.
