LONDON (AP) 鈥� BP鈥檚 earnings more than doubled in the third quarter as the London-based energy giant benefited from high oil and natural gas prices following .
Underlying replacement cost profit, which excludes one-time items and fluctuations in the value of inventories, jumped to $8.15 billion from $3.32 billion in the same period last year, BP said Tuesday. The company also announced plans to reward shareholders, buying back another $2.5 billion of stock.
Soaring earnings at British energy companies are fueling calls for the government to expand a tax on their windfall profits as Prime Minister Rishi Sunak struggles to close an estimated 40 billion-pound ($46 billion) hole in the budget. last week said third-quarter earnings more than doubled to $9.45 billion.
U.S. President Joe Biden also has if energy companies don鈥檛 boost domestic production, accusing them Monday of 鈥渨ar profiteering.鈥�
It comes as oil companies around the world are seeing earnings surge, with on Tuesday reporting a $42.4 billion profit, it's second-highest quarterly earnings ever. Last week, with $19.66 billion in profits in the three months to September and California-based Chevron got close to its peak from last quarter with $11.23 billion.
For BP, it is plowing some of the profits from high oil and natural gas prices into renewable energy as it tries to . During the third quarter, the company bought Archaea Energy, which produces natural gas from landfills and other waste sites across the U.S. and agreed to buy 40.5% of the Asian Renewable Energy Hub, which plans to develop wind and solar power projects in Western Australia.
鈥淭his quarter鈥檚 results reflect us continuing to perform while transforming,鈥� Chief Executive Bernard Looney said in a statement.
Britain in May imposed an additional 25% tax on profits earned from oil and gas extraction in the U.K. The temporary tax is designed to raise about 5 billion pounds through the end of 2025. The new tax cost BP $778 million in the third quarter, the company said.
The pressure on the U.K. government is likely to increase for a higher windfall tax.
鈥淲e need to raise more money from a windfall tax on oil and gas companies and actively encourage them to invest in renewables,鈥� said Alok Sharma, who chaired COP26, the last U.N. climate summit.
BP鈥檚 earnings jumped as Brent crude, a benchmark for European oil prices, averaged $100.84 a barrel in the third quarter, 37% higher than during the same period last year.
as . In the U.K., wholesale gas prices averaged 137% higher than a year earlier.
Although , BP said it expects them to remain high during the fourth quarter after the and as Russia limits gas supplies.
Danica Kirka, The Associated Press
