BP increases dividends after record profit

Last year, BP saw its profits more than double due to the rise in gas prices resulting from the conflict in Ukraine.

According to the company, it will invest $8bn more (£6.6bn each) in energy transition and oil and gas. Bernard Looney, boss of the company, promised to continue affordable energy.

According to the business, the underlying replacement cost profit (the most closely followed figure by analysts) reached $27.7bn last year (£23bn).

This measure was slightly lower than in previous quarters, at $4.8bn (£4bn).

BP stated that the result was affected by its gas marketing unit, which had below-average results following an extraordinary third quarter.

The huge profit will put BP in the middle of another political fight. Last week, Shell reported its largest profit ever recorded. This has prompted calls for an additional windfall income tax.

Oil giant BP has slashed its ambitions in relation to climate change.

According to the business, it anticipates that carbon emissions from its oil and gas production will drop by 20-30% by 2030 compared with 2019. The previous goal was a reduction of 35-40% in carbon emissions.

The announcement comes after the company stated that it will produce around 2 million barrels per day of oil equivalent by 2030.

This is 25pc less than in 2019, however, the company had previously planned to reduce production by 40pc.

Bernard Looney, chief executive officer, stated:

To meet our current needs and ensure a smooth transition, we need to continue to invest in the energy system today, which is dependent on oil and gas.

Our portfolio includes high-quality options, so we can choose only the best.

We will prioritize projects that can be delivered quickly and at a low cost using our existing infrastructure. This will allow us to minimize additional emissions, maximize both value and contribute to energy security and affordability.

Markets rise after record BP profits