BP Posts Record 2022 Earnings, Biggest Profit In 114-Year History Leave a comment

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The first-quarter results come as the EU prepares its sixth package of economic sanctions against Russia; the bloc remains split on how to wind down its dependence on Russian energy supplies. “All in all, in an underlying sense, a good quarter for the company,” he added. BP has further boosted returns to shareholders after net profit jumped to its highest level in more than a decade. Net debt was reduced to $30.6 billion by the end of 2021, down from $38.9 billion when compared to year-end 2020. “It has been another good quarter for the company,” BP CEO Bernard Looney told CNBC’s “Squawk Box Europe” on Tuesday. Sign Up NowGet this delivered to your inbox, and more info about our products and services.

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Oil and gas majors face the prospect of a possible windfall tax to help fund a national package of support for households over spiraling energy bills. This has renewed calls for higher taxes on record oil company profits, particularly at a time when surging gas and fuel prices have boosted inflation around the world. The burning of fossil fuels, such as oil and gas, is the chief driver of the climate crisis and researchers have found fossil fuel production remains “dangerously out of sync” with global climate targets.

This indicates that BP will be able to sustain or increase its dividend. Oil prices have rebounded to reach multi-year highs in recent months and all three of the world’s main forecasting agencies — OPEC, the International Energy Agency and the U.S. Energy Information Administration — now expect a demand-led recovery to pick up speed in the second half of the year. Crude futures rose to an average of $69 a barrel in the second quarter, up from an average of $61 in the first three months of the year. Brent futures were trading at around $72.74 per barrel on Tuesday morning.

Sign-up to receive the latest news and ratings for BP and its competitors with MarketBeat’s FREE daily newsletter. The P/E ratio of BP is -55.24, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings. BP has a short interest ratio (“days to cover”) of 1.2, which is generally considered an acceptable ratio of short interest to trading volume. “All moments of great turmoil in global energy,” Spencer Dale, chief economist at BP, said in the report. It comes after a 12 month period which BP has described as “a year like no other” for global energy markets. This included pre-tax charges of $24 billion and $1.5 billion relating to the exit of its Rosneft stake in response to Moscow’s invasion of Ukraine.

Earnings History

Reported net profits of $15.6 billion and $23 billion, respectively, a huge upswing compared to the year prior when the coronavirus pandemic hit oil demand. The company’s underlying replacement cost profit, which excludes one-time items and fluctuations in the value of inventories, jumped to $27.7 billion in 2022 from $12.8 billion a year earlier. The company also recently announced a dividend, which will be paid on Friday, March 31st. Investors of record on Thursday, February 16th will be issued a dividend of $0.07 per share. On Tuesday, January 10th, Murray Auchincloss bought 78 shares of BP stock. The stock was bought at an average price of GBX 479 ($5.84) per share, with a total value of £373.62 ($455.36).

That compared with a loss of $6.7 billion over the same period a year earlier and $2.6 billion net profit for the first quarter of 2021. On Tuesday reported bumper first-quarter profits and boosted share buybacks, despite posting a massive loss after offloading its nearly-20% stake in Russian-controlled oil company Rosneft. BP’s first-quarter underlying replacement cost profit, used as a proxy for net profit, came in at $6.2 billion. Analysts had expected BP to report first-quarter profit of $4.5 billion, according to Refinitiv. The British energy major posted second-quarter underlying replacement cost profit, used as a proxy for net profit, of $8.5 billion. Share prices of the world’s largest oil and gas majors are not yet reflecting the improvement in earnings, however, and the industry still faces a host of uncertainties and challenges.

The once British Petroleum is now “Beyond Petroleum” and focused on a major shift in its business. The company is working hard to move away from non-renewable carbon-based energy and into biofuels, solar, and wind. The company hopes to be net-zero in regard to carbon emissions and production by 2050 or earlier and is well on the way to doing so. Among the many avenues of advance are the build-out of solar and wind farms as well as the expansion of a major EV charging network.

The world’s largest oil and gas companies have shattered profit records in recent months, following a surge in commodity prices prompted by Russia’s invasion of Ukraine. For many fossil fuel firms, the immediate priority appears to be returning cash to shareholders via buyback programs. The world’s largest oil and gas majors have reported bumper earnings in recent months, leading to renewed calls for higher taxes on record oil company profits. The world’s largest oil and gas majors have reported bumper earnings in recent months, benefiting from surging commodity prices following Russia’s invasion of Ukraine.

Industry, Sector and Symbol

The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. In addition, it produces and refines oil and gas for its downstream operations as well as invests in upstream, downstream, and alternative energy companies including advanced mobility.

The U.K.-based energy major said it will buy back $1.4 billion of its own shares in the third quarter on the back of a $2.4 billion cash surplus accrued in the first half of the year. It also increased its dividend by 4% to 5.46 cents per share, having halved it to 5.25 cents per share in the second quarter of 2020. It is against this backdrop that anti-poverty campaigners have described the profits of U.K. Oil and gas producers as “obscene,” particularly since a hike in energy bills could make it impossible for anadditional 1.1 million homes to adequately heat themselves. Households are facing a record-breaking increase in their energy bills amid a cost of living crisis. The burning of fossil fuels, such as coal, oil and gas, is the chief driver of the climate crisis.

The Zacks Analyst Blog Highlights Mastercard, Raytheon Technologies, BP, CVS Health and Uber Technologies

A surge in global gas markets through the final months of 2021, coupled with an oil price rally to seven-year highs, has seen the world’s largest fossil fuel giants rake in bumper revenues. U.S. President Joe Biden on Monday called on oil majors to stop “war profiteering” and threatened to pursue higher taxes if industry giants did not work to cut gas prices. That compared with a profit of $6.2 billion in the first three months of the year and $2.8 billion for the second quarter of 2021.

Lawmakers from across the political spectrum have renewed calls on Prime Minister Boris Johnson’s government to impose a windfall tax on North Sea producers to help fund a national package of support for households. BP said it intends to deliver a further $1.5 billion in share buybacks and maintained its dividend at 5.46 cents per share. “I know I sound like a broken record but that is what we are doing. We are performing and delivering for our shareholders today, while at the same time leaning into the future and transforming the company.” BP announced another $2.5 billion in share repurchases and said net debt had been reduced to $22 billion, down from $22.8 billion in the second quarter. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. BP has not confirmed its next earnings publication date, but the company’s estimated earnings date is Tuesday, May 2nd, 2023 based off last year’s report dates.

• Government to impose meaningful measures to bring down the cost of rising energy bills.
• MarketBeat has tracked 2 news articles for BP this week, compared to 5 articles on an average week.
• It comes after a 12 month period which BP has described as “a year like no other” for global energy markets.
• Among the many avenues of advance are the build-out of solar and wind farms as well as the expansion of a major EV charging network.
• Only 29 people have added BP to their MarketBeat watchlist in the last 30 days.

The British energy major posted underlying replacement cost profit, used as a proxy for net profit, of $12.8 billion for 2021. Analysts polled by Refinitiv had expected full-year net profit of $12.5 billion. BP reported a massive upswing in full-year net contact go markets leading broker offering forex, share cfds and more profit for 2021, its highest in eight years, supported by soaring commodity prices. Global oil demand roared back last year, with gasoline and diesel use surging as consumers resumed travel and business activity recovered amid the coronavirus pandemic.

Reported record second-quarter results of $11.5 billion and announced a $6 billion share buyback program, while British Gas owner Centrica reinstated its dividend after a massive increase in first-half profits. BP’s first-quarter underlying replacement cost profit, used as a proxy for net profit, came in at $2.6 billion. That compared with a profit of $115 million in the fourth quarter and $791 million for the first quarter of 2020. Analysts had expected BP to report first-quarter profit of $1.4 billion. The energy major posted full-year underlying replacement cost profit, used as a proxy for net profit, of $2.8 billion.

BP’s oil drilling rig Deepwater Horizon, operating in the Macondo Prospect in the Gulf of Mexico, exploded just over 11 years ago on April 20, 2010. It resulted in the death of 11 workers and caused millions of barrels of crude to gush into the Gulf over an 87-day period. “Overall, a very strong quarter for the company,” BP CEO Bernard Looney told CNBC’s “Squawk Box Europe” on Tuesday. One share of BP stock can currently be purchased for approximately $35.85. Earnings for BP are expected to decrease by -2.52% in the coming year, from $6.36 to $6.20 per share.

Operations are currently underway in 80 countries around the world, the company can produce 3.7 million barrels of oil equivalents per day, and it lays claim to nearly 20 billion barrels in proven reserves. On the retail end of the business, the company operates more than 18,700 fuel stations and its largest segment is in the US. The ongoing Covid-19 crisis triggered a historic oil demand shock in 2020, with Big Oil companies enduring a brutal 12 months by virtually every measure. The pandemic coincided with falling commodity prices, evaporating profits, unprecedented write-downs and tens of thousands of job cuts.

“I understand the calls that are out there for a windfall tax right now but if we break the problem down, I think there are two solutions,” Looney said. “One is we need more gas, not less gas, and therefore we need to encourage investment into the North Sea and not discourage it. That’s number one,” he said. “And the second thing is around the transition, we need to accelerate the transition.” BP also posted fourth-quarter net profit of $4.1 billion, beating analyst expectations of $3.9 billion. “But the new U.K. Government must also urgently put us on track for a rapid transition away from dirty fossil fuels and onto renewables and decent home insulation, so we can fix this broken energy system once and for all.” Analysts polled by Refinitiv had expected third-quarter net profit of $6 billion.

BP has not formally confirmed its next earnings publication date, but the company’s estimated earnings date is Tuesday, May 2nd, 2023 based off prior year’s report dates. The company is scheduled to release its next quarterly earnings announcement on Tuesday, May 2nd 2023. The company was founded in 1908 with the purpose of exploring for and producing oil in the middle east. The company expanded into Alaska in 1959 and then accelerated its expansion when it merged with Amoco in 1998. Another merger with Burhman Castrol in 2000 created the company that is traded today.

“The company has seized the opportunity of a recovery in energy prices to pay down its debts, leaving it well set for the future when conditions might not be so favorable,” he continued. BP said it had generated a surplus cash flow of $1.7 billion in the first quarter https://day-trading.info/ after reaching its net debt target a year ahead of schedule. Looking ahead, BP said it intends to resume share buybacks at a cost of around $500 million in the second quarter. Based on earnings estimates, BP will have a dividend payout ratio of 25.32% next year.