Energy giant BP’S profits double to $27.7B

Industry’s huge earnings bring continued criticism

LONDON – British energy firm BP reported record annual earnings Tuesday, fueling demands that the U.K. government boost taxes for companies benefiting from the high price of oil and natural gas after Russia’s invasion of Ukraine.

London-based BP said 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. That beat the $26.8 billion BP earned in 2008, when tensions in Iran and Nigeria pushed world oil prices to a record of more than $147 a barrel.

BP also increased its quarterly dividend by 10% and announced plans to buy back an additional $2.75 billion of stock from shareholders.

But the good news for BP shareholders is likely to be tempered by the public fallout, particularly in its home country. High oil and gas prices have hit Britain hard, with double-digit inflation fueling a wave of public-sector strikes, soaring food bank use and demands that politicians expand a tax on the windfall profits of energy companies to help pay for public services.

Ed Miliband, the opposition Labour Party’s spokesman on climate issues, called on the U.K. government to bring forward a “proper” windfall tax on energy companies.

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

Similar censure was directed at London-based Shell last week, when it said annual earnings doubled to a record $39.9 billion last year.

Bumper profits for energy companies worldwide have sparked demands that the fossil fuel industry do more to offset high energy bills even as it cuts climatedamaging carbon emissions. U.s.-based Exxon Mobil posted record earnings of $55.7 billion last week.

Last year, Britain approved a 25% windfall tax on earnings from oil and gas

Micron’s plan to build in central New York and Taiwan Semiconductor’s project in Austin, Texas.

The report cites the work of Columbus State Community College to lead the workforce demands for those jobs by working with a mix of community colleges throughout the state along with state associations and other groups. The methods being used also could be used to help fill manufacturing positions for companies other than Intel.

“The region is well positioned. We have talented folks leading this,” said one of the report’s coauthors, Lavea Brachman.

The Intel project provides an opportunity to open up the pipeline to make it racially and economically inclusive, she said. Offering additional services such as child care and career counseling will better enable and prepare these workers for these semiconductor jobs, the report said.

Even with all the coordinated effort, it could be tough to find all the workers, Intel will need.

“It’s still a tight labor market in many ways,” she said. “It’s still to be seen where they are going to find all these workers.”

Lt. Gov Jon Husted said it’s critical for everyone to realize − educational institutions, local governments, and water and sewer agencies − they have a role in Intel’s success in Ohio.

Intel has to succeed as a company for Ohio to realize the maximum for what the Licking County site can be, Husted.

“We have to prove that we can support this industry from a talent, infrastructure, cost point of view in Ohio for Intel and other companies to continue to build in Ohio and that Ohio will be the go-to state for hightech manufacturing,” he said. “I’m confident that what we have will go well.”

Husted says he only worries about the things that can be controlled to make the project work − education, workforce, infrastructure and a friendly business environment.

“If we do great at this thing, I’m confident that this will be a huge boost,” Husted said. “I want our state’s children and grandchildren to never have to leave to a great career.” mawilliams@dispatch.com @Bizmarkwilliams