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BP said on Tuesday that its third-quarter profit doubled on higher commodity prices from a year earlier to $8.15 billion after the major Russian energy producer attacked Ukraine.

The firm’s earnings – following equally positive results at Chevron, Shell and TotalEnergies – are likely to increase pressure on the British government to slap an air tax to help cushion the impact of the cost of living caused mainly by higher costs. electricity and gas bills.

“This will not make it easier to collect taxes at a time when governments are facing financial holes that require difficult decisions about tax and spending,” said Oanda analyst Craig Erlam.


“Finding the right balance between taxing ‘surplus income’ due to the war in Ukraine without hindering investment will not be easy.”

BP added on Tuesday that it will pay about 2.5 billion in taxes this year in its North Sea business, including 800 million dollars related to taxes.

British Prime Minister Rishi Sunak unveiled a windfall tax on the profits of UK energy companies earlier this year when he was finance minister in Boris Johnson’s government.

Sunak has so far resisted calls to raise taxes, which have been criticized as too small by activists.

Liquefied natural gas

Late last month, Europe’s two largest energy companies Shell and TotalEnergies reported profits of more than $9 billion in the third quarter, although Shell’s liquefied natural gas (LNG) division has struggled to take advantage of higher fuel prices.

A Liquefied Natural Gas (LNG) plant in Raslaffan Industrial City in northern Qatar.  The tiny Gulf region sits on the largest gas field in the world - about 25 trillion cubic meters of gas is locked in its northern region.
A Liquefied Natural Gas (LNG) plant in Raslaffan Industrial City in northern Qatar. The tiny Gulf region sits on the largest gas field in the world – about 25 trillion cubic meters of gas is locked in its northern region. THE ASSOCIATED PRESS – anonymous

TotalEnergies posted adjusted earnings of $9.9 billion but notably took a charge of $3.1 billion after it sold a 49 percent interest in a Siberian natural gas field to Russian energy producer Novatek.

Full CEO Patrick Pouyanné acknowledged the effect of Russia’s war in Ukraine in increasing the price of oil and natural gas this year, saying that the company “used its integrated model, especially LNG (liquefied natural gas), to produce results in line with the previous quarter.”

Europe has turned to LNG as Russia has cut natural gas flows during the war.

Opposition parties in France want President Emmanuel Macron to impose an air tax to help finance consumer protection from rising energy prices.

Macron reiterated his opposition to such a measure in a prime-time television appearance last week.

(Wagencies)





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