BP has reported a huge profit for July to September due to high oil and gas prices exacerbated by Russia’s invasion of Ukraine.
The oil giant made $8.2bn (£7.1bn) for the period, more than double the profit over the same three months last year.
BP said it will pay $800m in windfall tax this year, a levy on profits made from extracting UK oil and gas.
Oil firms’ big profits are expected to lead to renewed calls for this windfall tax on energy firms to be increased.
The windfall tax was introduced by Rishi Sunak when he was chancellor. At the time Mr Sunak said the levy – which they have called an Energy Profits Levy – would raise £5bn in its first year.
Alok Sharma, UK’s COP president, tweeted: We need to raise more money from a windfall tax on oil and gas companies and actively encourage them to invest in renewables.”
Treasury sources have indicated an extension to the windfall tax is being discussed ahead of the Autumn Statement on 17 November, which will detail plans for tax rises and spending cuts as the government attempts to fill a “black hole” in public finances.
That could include increase the rate oil and energy companies have to pay on extraordinary profits, extending the timeframe it applies for or expanding it to include electricity generators.
The Treasury has warned that everyone will need to pay more tax “in the years ahead” as Mr Sunak, now prime minister, attempts to fill a “black hole” in public finances.
Last week, BP’s rival Shell revealed that it had paid no windfall tax in the UK because it had invested millions of pounds. But it said it expected to start paying the levy next year.
While BP is set to pay some windfall tax, it will also give its shareholders a boost by increasing its dividend payment by 10%, and will also spend $2.5bn buying back shares.
Oil and gas prices, which began increasing once Covid restrictions eased, accelerated after Russia invaded Ukraine in late February, resulting in huge profits for energy companies. But they have also exacerbated price rises – or inflation – for consumers.
All the big oil firms, including Total and Exxon Mobil, have announced bumper profits in the past week. Overnight, oil giant Saudi Aramco said it had made a profit of $42.4bn over just three months thanks to higher commodity prices.
On Monday, US President Joe Biden urged major oil firms who are bringing in big profits to stop “war profiteering”, threatening to hit them with higher taxes if they do not increase production which would help lower prices.
Commenting on whether oil firms should pay more tax, Nick Butler, a former BP executive who is now a visiting professor at King’s College London, told the BBC’s Today programme: “They have to balance what they pay in tax, what they invest in the future and what they pay back to shareholders.
“I think the next tax squeeze will come on the electricity retailers who haven’t been subjected to it yet,” he said.
“But if BP has to pay more in tax I think their shareholders will have to pick up part of the pain.”
Higher energy prices have fuelled the rise in gas and electricity bills for both households and businesses.
The government is limiting the impact through the Energy Price Guarantee scheme but instead of lasting for two years as originally planned, it will now end in April.
There have been warnings that typical household gas and electric costs could reach more than £4,300 when support is scaled back.
The price of energy has also been a major driver of inflation – the rate at which prices rise – which is currently 10.1%.
In the UK, energy companies such as BP and Shell pay a total tax rate of 65% on their profits, including the windfall levy.
BP’s profit for the quarter was much higher than analysts had expected but dipped from the previous three months due to a fall in the wholesale price of oil.
Oil prices hit $128 per barrel in early March as the assault on Ukraine intensified and a number of countries imposed sanctions on Russia and have since fallen back.
But BP said on Tuesday that even if oil prices dropped as far as to $60 per barrel, it could still afford to return billions of dollars to its shareholders.
Global Citizen Festival raises $2.4 Billion to end extreme poverty
Pledges totalling $2.4billion were announced as part of activities to mark the Global Citizen Festival in New York City and Accra on Saturday, September 24, 2022.
Key commitments were announced to celebrate the 10th anniversary of the festival’s impact and advocacy, through the hard work of many partner organizations.
A statement issued by Global Citizen said the 2022 Festival saw “more than US$800 million announced to end extreme poverty NOW and US$1.6 billion announced by the European Commission and Canada as part of the seventh replenishment of the Global Fund to Fight AIDS, Tuberculosis, and Malaria on Sept. 21, in addition to the announcement of five companies signing on to the UN-led Race to Zero initiative to reach net-zero emissions by 2050”.
Of this funding, more than US$440 million was earmarked exclusively to initiatives to end extreme poverty on the African continent, with the remainder intended to reach people around the world, including across Africa.
The Global Citizen Festival campaign announced commitments by world leaders and governments in support of ending poverty now, including Canada, Belgium, Denmark, the European Commission, Germany, Ghana, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Slovenia, United Nations, and the United States.
From around the world, messages of support for Global Citizen’s End Extreme Poverty NOW campaign were received by President Joe Biden and First Lady Dr. Jill Biden, President of France Emmanuel Macron, Prime Minister of Spain Pedro Sánchez, COP27 Youth Envoy Dr. Omnia el Omrani, Taoiseach of Ireland Micheál Martin, Dr. Phumzile Mlambo-Ngcuka, World Health Organization Director-General Dr. Tedros, COP26 President Alok Sharma, Former Secretary-General of the United Nations Ban Ki-moon, US Rep. Jamie Raskin, US Rep. Ann Wagner, and US Rep. John Curtis.
Financial and policy announcements were also made by many corporate, philanthropic, and NGO partners including Accenture, Cisco, Citi, Delta, the Dutch Postcode Lottery, Ford Foundation, Gavi and Girl Effect, the Global Menstrual Equity Hygiene Accelerator, Lego Foundation, Procter & Gamble, Rotary International, Verizon, WWT, YouTube and Google.org.
“Amidst all the doomsday messages we hear today, hope lies in the fact that millions of citizens are rising up to take action, more than any other point in history. 10 years ago, Global Citizen was just an idea – and 10 years from now we’ll see a generation of Global Citizens running for office, starting companies, and transforming communities,” said Hugh Evans, Co-Founder and CEO, Global Citizen.
In support of the Global Citizen campaign to defend the planet and take climate action NOW, five businesses officially signed on to the Race to Zero campaign to achieve net zero carbon emissions by 2050 as a part of Global Citizen Festival, including American Eagle Outfitters, Betterfly, Harith General Partners, Juan Valdez Café, and WWT.
Global Citizens have taken more than 2 million actions with Global Citizen in 2022 to help achieve Global Citizen’s mission to End Extreme Poverty NOW, more than doubling the record previously set by the international advocacy organization.
“With 43 days to go to COP, we need countries to move from pledges to implementation — as youth we have a critical role to play in making sure our nations do not backtrack on their promises,” said Dr. Omnia el Omrani, COP27 youth envoy, in a video message to Global Citizens at Global Citizen Festival.
With stages in Accra and New York, the event captured the Global Citizen ethos, channelling an eclectic array of musical talent in support of our efforts to End Extreme Poverty NOW and build momentum ahead of the G20 summit and UN Climate Conference, COP27, both in November.
BOST profit: State-owned enterprises can deliver value with right leadership – NAPO
Minister of Energy, Dr. Matthew Opoku Prempeh, has commended the Bulk Oil Storage and Distribution Company Limited (BOST) for the turnaround in its operational and revenue fortunes.
This comes on the back of the state-owned firm, increasing its profits to GH¢161million in 2021 after it recorded a loss of GH¢291 million in 2020.
Speaking at the first Annual General Meeting of the company, Dr. Opoku Prempeh said the development demonstrates that state-owned enterprises can deliver value through the right leadership and management to boost national development.
“The transformation is indeed massive, as evidenced in improved operational efficiency. This is the path to go if we should attain the path of State-Owned Enterprises contributing to the fiscal policy of government for its national growth and development agenda. Imagine if 100 SOEs each made GH¢150million net income,” Dr. Opoku Prempeh said.
The Minister disclosed that the improvement in BOST’s revenue was due to a core business strategy and an increase in petrol and diesel sales revenue of about 83 percent.
He added that an amount of US$611 million paid from the US$624 million debt accumulated in 2017 was generated from BOST’s internally generated funds.
The sector minister also lauded the management of the state-owned firm for the effective utilisation of revenue generated from the nine pesewas BOST margin on petroleum products.
He explained that proceeds from the petroleum levy were used to undertake renovation and repair works on fuel depots, decommissioning of tanks, revamping four river barges for fuel transportation on the Volta Lake, and the upgrade of the Akosombo jetty.
“The rest are upgrade and replacement of loading arms, pumps and valves across all the depots at Buipe-Bolgatanga-Petroleum-Product-Pipeline; Tema-Akosombo-Petroleum Product-Pipeline; and Bolgatanga Petroleum Export Depot among others.”
He continued, “Comparing figures, I also saw BOST reducing its administrative expenses from as high as GH¢538 million in 2016 with a staff strength of 349 to GH¢212 million in the year 2021 with a staff strength of 487.
The energy minister also commended BOST for deploying cost-cutting measures in its operations.
“Genuine administrative costs grow upward and not downward due to factors like inflation among others but I would like to commend management for the prudence that resulted in these massive reductions in the cost of operations.
The company is spending less while achieving more for the government and people of Ghana; from the face of the record, this is an impressive performance that the company’s board and management need to be commended for,” the energy minister stated.
Dr. Opoku Prempeh in his concluding remarks reaffirmed BOST of government’s commitment to make the entity an effective and profitable one.
“I am aware of recent developments in the mass media on BOST, but I am also aware of the political economy around operations of the company. Government is also aware of the turf-war to get the company derailed, and we are not falling for those who seek to engage the reverse button,” he emphasised.
Silver Star loses benz dealership deal in Ghana
Silver Star Auto Limited, a popular automobile firm in Ghana has lost its deal as the authorized distributors of Mercedes benz in Ghana.
A Press Statement issued on Thursday, September 15, 2022 by the Company said Mercedes Benz Germany has decided to engage a new multinational dealer for the Ghanaian and West African market at large albeit leading the market share by far in Ghana for luxury vehicles.
“We have tried our level best to make a case with Mercedes-Benz in Germany without luck, all appeals failed to have produce any response from them leaving us no choice but to seek redress from the courts,” the company said in its statement.
Despite the separation, SSAL assured its customers that it will still remain an independent trusted partner for Mercedes-Benz advice, support, and aftersales service.
Below is the full statement
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PIAC, GNPC expected at Ofori-Atta censure hearing today
Public university workers remain on strike after continued stalemate
Okomfo Nana Agradaa Arrested; two TV stations showing ‘mօnᥱy-dօubling r¡tuals’ shut down [Video]
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PIAC, GNPC expected at Ofori-Atta censure hearing today
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- England defender Harry Maguire gets roasted in Ghanaian parliament (Video) December 4, 2022
- Ghana vs Switzerland (2-0) Full Highlights Goals, Pre-Qatar 2022 FIFA World Cup Friendly Match (Video) November 18, 2022
- StorONE is transforming software-defined storage November 17, 2022
- ICANN Boost Africa Internet Access with New Root Server November 17, 2022
- Parliament to begin implementing no scanning, no entry directive today November 17, 2022
- PIAC, GNPC expected at Ofori-Atta censure hearing today November 17, 2022
- Public university workers remain on strike after continued stalemate November 17, 2022
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