SHARE OF THE WEEK: BP set to fan flames of windfall tax row


SHARE OF THE WEEK: BP will no doubt fan flames of windfall tax row with another round of bumper profits on back of high oil and gas prices

BP will no doubt fan flames of the windfall tax row next week with another round of bumper profits on the back of high oil and gas prices. 

Rival Shell this week posted quarterly profits of more than £8billion which, although lower than its record second quarter, allowed it to dish out an additional £3.5billion in share buybacks as well as a 15 per cent dividend hike. 

BP investors will be hoping the FTSE100 giant can replicate these payouts, considering the group is better placed to take advantage of higher energy prices due to spending cuts and debt repayments. 

But next Tuesday’s figures for the third quarter are likely to spark fresh calls for a windfall tax on the industry. 

There will be interest in whether BP beats its second quarter profit of £7.4billion. 

Investors will also be eyeing new share buybacks. BP has already unveiled £6.4billion of stock repurchases this year. 

Its focus on costs will likely keep a lid on production rises which, while good for green campaigners, may provide little comfort to households and motorists hoping for energy prices to fall and lower bills. 

Shareholders will also be keeping an eye on whether the group has managed to reduce its debt due to the oil price boom. 

BP’s debt is now 60 per cent lower than its peak of £50billion reached in the first quarter of 2020. 

Finally, activists and investors may look to BP boss Bernard Looney for updates on the firm’s transition to renewable energy ahead of next month’s Cop27 climate summit in Egypt. 

Read more at DailyMail.co.uk