BP has additionally outlined plans to make investments as much as £18bn within the UK’s power system over the subsequent eight years, insisting it’s ‘backing’ the nation.
The oil big says it plans to proceed investing in North Sea oil and fuel, and likewise develop decrease carbon power investments within the UK.
These tasks will embody offshore wind, electrical car charging (the place it introduced a £1bn rollout in March), and two large-scale hydrogen manufacturing amenities in Teesside, in addition to creating its community of gas stations throughout the UK.
Bernard Looney, chief govt officer of bp, stated:
“We’re backing Britain. It’s been our dwelling for over 110 years, and we’ve been investing in North Sea oil and fuel for greater than 50 years. We’re totally dedicated to the UK’s power transition – offering dependable home-grown power and, on the similar time, specializing in the drive to web zero.
And now we have formidable plans to do extra and to go sooner. Our plans transcend simply infrastructure – they see us supporting the economic system, expertise improvement and job alternatives within the communities the place we function. We’re all in.”
Final week, enterprise minister Kwasi Kwarteng wrote to the North Sea oil and fuel trade asking it to set out a transparent plan to reinvest its income into British power tasks.
BP’s plans for the North Sea embody:
- Creating decrease emission oil and fuel tasks to help close to time period safety of provide, for instance, on the Murlach, Kate and Mungo fields across the bp-operated ETAP hub within the central North Sea and the Clair and Schiehallion fields West of Shetland.
- Investing in exploration round its current North Sea hubs.
- Progressing asset electrification tasks within the Central North Sea and West of Shetland to additional scale back operational emissions and supporting the North Sea Transition Deal.
Liberal Democrat Chief Ed Davey can also be calling for a windfall tax on power corporations:
“The Conservative authorities’s refusal to introduce a windfall tax on the tremendous income of oil corporations is changing into not possible to justify.
BP is raking in eye-watering income whereas hundreds of thousands of individuals wrestle to pay the payments. It’s an unforgivable lack of management from Boris Johnson at a time of nationwide disaster.
Oil corporations are handing out large dividends and shopping for again shares, they might simply afford to pay a little bit extra to assist probably the most weak.
Labour’s shadow chancellor, Rachel Reeves, says the case for a windfall tax to assist households strugging with greater power payments ‘can’t be ignored’:
Good morning, and welcome to our rolling protection of enterprise, the world economic system and the monetary markets.
BP has greater than doubled its underlying income because the Ukraine battle drove up power costs… and brought a mammoth hit from quitting Russia.
Underlying alternative income on the oil firm jumped to $6.245bn (£5bn) within the first quarter of the 12 months, a time by which crude oil costs touched their highest ranges since 2008, and fuel costs hit information.
That’s up from $2.63bn in the identical quarter a 12 months in the past, and $4.065bn within the final three months of 2021, BP’s newest monetary outcomes, simply launched, present.
Reuters stories it’s the very best underlying income in additional than a decade.
BP says the leap in income was pushed by “distinctive oil and fuel buying and selling, greater oil realizations and a stronger refining outcome”.
Nevertheless it has additionally taken fees totalling $25.5bn to cowl its exit from Russia, the place it’s abandoning its stake in Rosneft.
That has pushed the corporate into an enormous reported lack of $23bn, on a alternative price foundation.
BP’s CEO Bernard Looney says:
In 1 / 4 dominated by the tragic occasions in Ukraine and volatility in power markets, bp’s focus has been on supplying the dependable power our prospects want.
Our choice in February to exit our shareholding in Rosneft resulted within the materials non-cash fees and headline loss we reported in the present day.
BP has additionally introduced a brand new $2.5bn share buyback, which can funnel a few of its income again to shareholders.
Through the first quarter bp generated surplus money circulation of $4.1bn and intends to execute a $2.5bn share buyback previous to saying its second quarter outcomes.
BP’s bumper earnings will renew strain for a windfall tax on power corporations, to assist power corporations to assist UK households grappling with rising family payments.
Enterprise secretary Kwasi Kwarteng quashed the thought on Sunday, saying it might discourage new tasks, after chancellor Rishi Sunak instructed he’d take a look at it if corporations didn’t make extra funding in new oil and fuel extraction.
Italy has proven it may be executed. Yesterday, Mario Draghi’s authorities unveiled a €14bn bundle of help for weak households and companies dealing with surging commodity costs following the battle in Ukraine.
Will probably be partly funded by a 25% tax on power teams windfall income, up from the ten% first deliberate.
Additionally arising in the present day
The newest manufacturing PMI report will present how UK factories fared in April, as considerations develop that Britain might slide into recession this 12 months.
Worries concerning the well being of the worldwide economic system rose yesterday, as knowledge confirmed that eurozone manufacturing output stalled in April. In China, manufacturing unit exercise contracted on the quickest price in two years.
The FTSE 100 is predicted to drop round 0.8% as Metropolis merchants return to their keyboards after the Financial institution Vacation break, catching up with losses in European markets on Monday. However different markets are seen opening greater, after a late rebound on Wall Avenue final night time.
European finance ministers will talk about proposals for banking union on a video name in the present day. Eire’s Paschal Donohoe, who chairs the eurogroup, is pushing for a typical deposit insurance coverage fund to make sure depositors’ funds throughout the bloc.
Eurogroup President Paschal Donohoe has been outlining his plans to interrupt the deadlock over the previous few days and can current his concepts to euro-area finance ministers in a video convention on Tuesday.
He desires to have a typical European deposit assure fund in place, not less than in embryonic kind, by 2024 to deliver added safety for savers and to strengthen the European banking system, in accordance with the proposal seen by Bloomberg.
- 8.55am BST: German unemployment report for April
- 9.30am BST: UK manufacturing PMI for April
- 9.30am BST: Hong Kong GDP report for Q1 2022
- 10am BST: Eurozone unemployment report for March
- 3pm BST: Eurogroup ministers maintain videoconference on plans for Banking Union