Reactions to today's profit announcement from BP

TUC – Government must impose a higher windfall tax on “fat cat” energy producers

Commenting on today’s annual profits from BP, TUC General Secretary Paul Nowak said:

“As millions struggle to heat their homes and put food on the table, BP are laughing all the way to the bank.

“Hard-pressed families will rightly feel furious – they are being treated like cash machines.

“This boils down to political choices.

“Ministers are letting big oil and gas companies pocket billions in excess profits. But they are refusing to give nurses, teachers and other key workers a decent pay rise.

“We need a government on the side of working people - not fat cat energy producers.

“That means imposing a higher windfall tax on the likes of BP and Shell. It means giving public servants fair pay. And it means giving households extra financial support as bills rise this April.”

BP’s green plans undermined after announcing record profits - Greenpeace

Commenting on news reports that BP’s profits doubled last year, to £23bn, which have been published this morning alongside a new strategy that compromises its green ambitions, Greenpeace UK’s head of climate justice, Kate Blagojevic, said: 

"BP is yet another fossil fuel giant mining gold out of the vast suffering caused by the climate and energy crisis. What's worse, their green plans seem to have been strongly undermined by pressure   from investors and governments to make even more dirty money out of oil and gas. This is precisely why we need governments to intervene to change the rules.

“Not only will BP’s new strategy fail to deliver much needed energy security in the UK but it will ensure that people across the globe already battling devastating droughts, floods and heatwaves, will continue losing their lives and livelihoods. It’s time to stop drilling and start making polluters, not communities - who did least to cause the problem - pay the price for the climate damage they are causing all around the world.”

Record BP profits “scandalous” says IPPR 

The UK’s leading progressive thinktank, IPPR, has responded to the announcement that BP has made £4 billion ($4.8 billion) in profits in the last quarter (Oct-Dec), taking their total annual profits for 2022 to £23 billion ($27.7 billion). BP have also announced a new round of share buybacks, transferring £2.3 billion ($2.75 billion) to shareholders, taking the total buybacks from 2022 profits to £9.35 billion ($11.25 billion). 

Joseph Evans, researcher at IPPR, said: 

”While bill-payers across the UK are struggling with soaring costs, BP’s shareholders are reaping enormous payouts. After the oil giant made record profits in 2022 it passed an extraordinary £9.35 billion directly back to shareholders through share buybacks. That’s a scandalous use of surplus cash which could have been used to lower bills, or invested in the green transition. America and Canada are already taking action on excessive shareholder payouts: it’s long overdue for the government to follow suit by introducing a tax on share buyback schemes.” 

A recent report published by IPPR and Common Wealth argued that share buybacks are a direct cash transfer away from households struggling to pay bills, via energy company profits, to already-wealthy shareholders. The report, Buy Back Better, contained the following analysis: 

• Share buybacks channel profits from companies to shareholders by increasing the value of shareholders’ stock. 
• FTSE 100 companies have announced £55 billion share buybacks in 2022. 
• President Biden has recently introduced a 1 per cent tax on share buybacks to help alleviate the cost-of-living crisis in America. 
• A 25 per cent tax on share buy backs could raise £13.5 billion a year. 

Ed Miliband responds to BP's 2022 results

Ed Miliband MP, Labour's Shadow Climate Change and Net Zero Secretary, responding to BP’s 2022 results, said:

“It’s yet another day of enormous profits at an energy giant, the windfalls of war, coming directly out of the pockets of the British people.

“What is so outrageous is that as fossil fuel companies rake in these enormous sums, Rishi Sunak still refuses to bring in a proper windfall tax that would make them pay their fair share.

“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.

“When it comes to oil and gas interests, Rishi Sunak is too weak to stand up for the British people. Only Labour is on your side - with a plan to tackle the cost of living crisis now, and a long term plan to cut bills for good and make Britain a clean energy superpower.”

Ends

Notes:

• BP recorded $27.7bn of underlying profit last year:https://www.bp.com/en/global/corporate/news-and-insights/press-releases/fourth-quarter-2022-results.html?s=08
  
  
• Shell recorded their highest profits in 115 years: https://www.bbc.co.uk/news/uk-64489147
  
  
• Labour has set out plans to use the proceeds of a proper windfall tax on the oil and gas companies to fund a package that would stop the energy price cap going up from April. Right now, government plans expose households to a major new spike in prices in April of over 40%.
  
  
• Labour will extend the windfall tax by closing the fossil fuel investment loophole, taxing oil and gas profits at the same rate as Norway, and backdating from the start of 2022. This would raise more than £13bn.