Money

UK Energy Giant BP’s Profits Double To $27.7 Billion

Published

1 year ago

2023-02-07

LONDON, England — On Tuesday, BP announced that it had made the most money ever in a single year. This added to calls for the UK government to raise taxes on companies that are making money off of the high prices of oil and natural gas because of Russia’s invasion of Ukraine.

BP, which has its headquarters in London, said that its underlying replacement cost profit, which does not include one-time items or changes in the value of inventories, went up from $12.8 billion in 2021 to $27.7 billion in 2022. BP earned $26.8 billion in 2008 when tensions in Iran and Nigeria drove global oil prices to a record of more than $147 per barrel.

BP also said it would buy back more shares from shareholders worth $2.75 billion and raise its quarterly dividend by 10%.

But public anger, especially in the country where the company is based, is likely to make the good news for BP shareholders less exciting. High oil and gas prices have hit Britain hard, with double-digit inflation fueling a wave of public-sector strikes, a surge in food bank use, and calls for politicians to expand a tax on energy companies‘ windfall profits to help pay for public services.

Ed Miliband, who is in charge of the environment for the opposition Labour Party, has asked the UK government to put a “proper” windfall tax on energy companies.

BP Faces Critisism Over The Profit Margins

“Yet another day of huge profits at an energy giant, windfalls from war,” Miliband said.

Shell, based in London, received similar criticism last week after reporting that its annual earnings more than doubled to a record $39.9 billion.

Energy companies around the world are making a lot of money, which has led to calls for the fossil fuel industry to do more to help with high energy bills and reduce carbon emissions that hurt the environment. Last week, Exxon Mobil, which is based in the United States, said it made a record $55.7 billion.

Last year, Britain put a 25% windfall tax on earnings from oil and gas production in the country. In 2023, the tax will go up to 35%. Opposition leaders have chastised the government for allowing energy companies to reduce their tax liability by investing in the United Kingdom.

BP said it took a $1.8 billion charge last year to cover the new UK tax.

The Company Had To Pay Lots Of Fees To Leave Russia

The company also had to pay $25.5 billion in fees because it decided to pull out of its investments in Russia after Russia invaded Ukraine.

After taking into account one-time costs and changes in the value of inventories, BP reported a net loss of $2.49 billion for 2022. This is a big change from the year before, when it made a net profit of $7.57 billion.

BP said on Tuesday that it would invest an extra $8 billion in its oil and gas businesses, as well as in clean energy, hydrogen, and charging stations for electric cars, through 2030.

The investments will increase oil and gas production to approximately 2 million barrels of oil equivalent per day by 2030. BP had planned to cut production by 40%, but the new goal is only 25% less than what was planned for 2019.

“We will prioritize projects where we can deliver quickly, at a low cost, and using our existing infrastructure, allowing us to minimize additional emissions while maximizing both value and our contribution to energy security and affordability,” said CEO Bernard Looney statement.

Prices Of Oil Has Been Falling

Following the invasion of Ukraine, energy prices skyrocketed. Brent crude, a global oil price benchmark, averaged $101.32 per barrel last year, 43% higher than in 2021. The average wholesale price of natural gas in the United Kingdom increased by 76%.

Prices have been falling in recent months, with Brent crude averaging $88.87 per barrel in the fourth quarter.

“The question is, what will they do with record profits and operating cash flow? Governments are already questioning record profits from peer global energy companies,′′ according to Gianna Bern, author of “Investing in Energy: A Primer on the Economics of the Energy Industry.” “At a time when inflation and gas prices are both at record highs, energy companies around the world will have to rethink the cost and availability of energy for everyone.”

According to Alice Harrison, fossil fuels campaign leader at environmental advocacy nonprofit Global Witness, BP’s profits were made “on the back of three global crises” — the Ukraine war, the energy crisis, and climate breakdown.

“These massive profits will be a bitter pill to swallow for those in need,” Harrison said. “There’s no denying it: BP is richer because we’re poorer.”

SOURCE – (AP)

Business

Warren Buffett Has Finally Revealed What Will Happen To His Money After He Dies

Published

4 weeks ago

2024-06-28

Kiara Grace

Warren Buffett suddenly changed how his vast fortune would be spent after his death.

Buffett, 93, the chairman of Berkshire Hathaway, told the Wall Street Journal that he has revised his will and does not intend to continue making payments to the Bill & Melinda Gates Foundation after his death. He plans to place his riches in a new charity trust controlled by his three children.

“The Gates Foundation has no money coming after my death,” Buffett told the Journal.

Buffett | Fortune image

Warren Buffett Has Finally Revealed What Will Happen To His Money After He Dies

Buffett told the Journal that he had altered his will multiple times, and he put together the most recent plan because he believes in his children’s beliefs and how they will share his fortune. Each of Buffett’s children runs a charitable organization.

“I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out,” Buffett said in a Journal interview.

Previously, Buffett stated in his will that more than 99% of his estate would be donated to the Bill & Melinda Gates Foundation and four family-related charities: the Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and the NoVo Foundation.

Buffett plans to continue making donations to the Gates Foundation during his lifetime.

Berkshire Hathaway announced Friday that Buffett is changing around 9,000 Class A shares into more than 13 million Class B shares. The Bill & Melinda Gates Foundation Trust will receive around 9.3 million shares, with the remainder distributed among the four Buffett family charities.

“Warren Buffett has been exceedingly generous to the Gates Foundation through more than 18 years of contributions and advice,” the foundation’s CEO, Mark Suzman, told CNN. “We are deeply grateful for his most recent gift and contributions totaling approximately $43 billion to our work.” (Melinda stated in May that she would leave the group; her last day was June 7, but the foundation’s name has not yet changed.)

Buffett donated over $870 million to his family’s four organizations last year, with an additional $750 million expected in 2022.

According to the corporation, after the newly announced donations, Buffett now holds 207,963 Berkshire Hathaway Class A shares and 2,586 Class B shares. The shares are worth approximately $128 billion. Warren Buffett suddenly changed how his vast fortune would be spent after his death.

buffett | CNBC image

Warren Buffett Has Finally Revealed What Will Happen To His Money After He Dies

“The Gates Foundation has no money coming after my death,” Buffett told the Journal.

“I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out,” Buffett said in a Journal interview.

Buffett plans to continue donating to the Gates Foundation during his lifetime.

Warren Buffett Has Finally Revealed What Will Happen To His Money After He Dies

Buffett donated over $870 million to his family’s four organizations last year, with an additional $750 million expected in 2022.

SOURCE – (CNN)

Investment

Amazon Crosses $2 Trillion In Stock Market Value For The First Time

Published

4 weeks ago

2024-06-26

Kiara Grace

NEW YORK — Amazon.com Inc.’s market value topped $2 trillion for the first time in afternoon trade on Wednesday.

The increase in Amazon’s stock market valuation comes just over a week after Nvidia reached $3 trillion and briefly became the most valuable firm on Wall Street.

Amazon | AP News Image

Amazon Crosses $2 Trillion In Stock Market Value For The First Time

Nvidia’s chips power numerous AI applications, so the company’s price has skyrocketed.

Amazon has also made significant investments in AI as the technology’s popularity has increased worldwide.

Amazon | Forbes Image

Amazon Crosses $2 Trillion In Stock Market Value For The First Time

The majority of the company’s attention has been on business-oriented products, such as AI models and a chatbot named Q, which Amazon makes available to businesses that use its cloud computing unit AWS.

In April, Amazon CEO Andy Jassy stated that AI capabilities have reaccelerated AWS’s growth and that it was on track to generate $100 billion in annual revenue.

Amazon | Forbes

Amazon Crosses $2 Trillion In Stock Market Value For The First Time

Last year, the unit’s growth slowed as companies trimmed expenditures due to high inflation.

The digital behemoth has also invested $4 billion in Anthropic, a San Francisco-based AI business, to develop foundation models for generative AI systems. Amazon also creates and designs its own AI processors.

SOURCE – (AP)

Business

AmEx Buys Dining Reservation Company Tock From Squarespace For $400M

Published

1 month ago

2024-06-24

Kiara Grace

AmEx | Fast Company Image

NEW YORK — American Express will pay $400 million for Squarespace’s Tock meal reservation and event management software.

AmEx began making dining and event purchases five years ago with the purchase of Resy, which provided cardmembers with access to difficult-to-find restaurants and locations.

AmEx | AP News Image

AmEx Buys Dining Reservation Company Tock From Squarespace For $400M

Other credit card difficulties have done the same thing. JPMorgan bought The Infatuation as a lifestyle brand in 2021.

Tock, founded in Chicago in 2014 and owned by Squarespace since 2021, offers reservation and table management services to about 7,000 restaurants and other venues.

AmEx | Yahoo Image

AmEx Buys Dining Reservation Company Tock From Squarespace For $400M

Tock has signed on restaurants such as Aquavit, a high-end Nordic restaurant in New York, and Chez Noir, a buzzy new restaurant in California.

Squarespace and Tock confirmed the acquisition on Friday.

AmEx’s purchase of Resy five years ago raised many heads in the credit card and dining industries. Since then, it’s become an important component of how the corporation secures high-end merchants to be AmEx-exclusive or to provide AmEx cardmembers with special treatment.

AmEx | Eat App Image

AmEx Buys Dining Reservation Company Tock From Squarespace For $400M

The number of eateries on the platform has increased fivefold.

AmEx also announced Friday that it will acquire Rooam, a contactless payment technology widely used in stadiums and other entertainment events. AmEx did not disclose the amount it paid for Rooam.

SOURCE – (AP)