After Shell, Exxon Mobil & Co, BP and Saudi Aramco have now made billions in profit thanks to the rise in energy prices, fueling the discussion about special taxes. British BP more than doubled its profit in the quarter to $8.15 billion (last year: $3.3 billion), the group announced Tuesday. At the state-owned Saudi Arabian oil producer Aramco, net profit rose by 39 percent to 42.4 billion dollars (42.77 billion euros).
Recently, BP rivals such as Shell, Exxon Mobil, Chevron and TotalEnergies also reported record profits as the companies benefit from the energy crisis. The Austrian OMV also earned a lot of money in the third quarter and, as reported, recorded a profit before tax of 9.1 billion euros.
Biden with claims on oil and gas companies
The bustling income of the corporations, while at the same time citizens are moaning from inflation, are pushing politicians to action. US President Joe Biden on Monday urged oil and gas companies to invest some of their record profits in cost-cutting US families. If they refuse, Congress should consider imposing punitive taxes and other restrictions on businesses, Biden said. In addition, the companies have to increase their production.
BP CFO Murray Auchincloss declined to comment on Biden’s request, but told Reuters the company paid $5 billion worldwide in the quarter. The tax rate is 37 percent. BP also expects to pay approximately $2.5 billion in taxes this year on its UK North Sea operations. $800 million of that is taxes for so-called random profits. At the end of September, the EU member states decided to skim off the accidental profits of the electricity producers and also the oil companies.
Higher gas prices boosted profit
BP said higher gas prices and “extraordinary gas marketing and trading performance” boosted profits. The board announced it would increase its quarterly dividend by 10 percent and expand its share repurchase program by $2.5 billion. BP has already bought back $7.6 billion in shares this year.
Aramco’s lavish profits push cash flow to $45 billion, from $28.7 billion a year earlier. Aramco’s strong earnings and record-breaking free cash flow in the third quarter supported the company’s ability to create significant value, said CEO Amin Nasser. A portion goes to the shareholders. The company announced a $18.8 billion payout for the quarter.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
