BP Reports 8-Year High Profits for 2021 Due to Rebounding Oil and Gas Prices

Oil industry company BP (NYSE: BP) reported impressive profits for 2021. The company’s profits for the year hit their highest in eight years on increased oil and gas prices. The profits generated by BP in the full year and the fourth quarter of 2021 exceeded analysts’ predictions. Moving forward, the company has boosted share buybacks and also sped up plans to cut emissions with increased spending on low carbon energy. BP plans to deliver an additional 41.5 billion in share buyback while attaining its dividend at 5.46 cents per share.

BP shares are currently up 0.12% to $33.38 in premarket trading. Data shows that BP has surged all year, growing more than 53.43%. The company has also added 25.20% since the year started, pulling in another 18.23% in the last three months. Over the past month. BP has advanced over 9% and has pumped 4.97% in the last five days.#

BP Pulls in Impressive Profits in 2021

Following significant losses in 2020, BP saw massive profits in 2021, recording an annual of $12.85 billion. Analysts polled by Refinitiv had forecasted that BP would see a net profit of $12.5 billion. Also, the 2021 profits are reliefs from the net loss of $5.7 billion in 2020. Furthermore, BP outperformed analysts’ expectations in its Q4 net profit. The company said its net profit for the last quarter was $4.1 billion, beating analysts’ expectations of $3.9 billion. Speaking to CNBC’s “Squawk Box Europe,” BP CEO Bernard Looney talked about the 8-year high profits. He said:

“It has been another good quarter for the company. We call it performing while transforming. I know I sound like a broken record but that is what we are doing. We are performing and delivering for our shareholders today, while at the same time leaning into the future and transforming the company.”

With significant profits in 2021, BP has reduced net debt from $38.0 billion at the end of 2020 to $30.6 billion at the end of the last year. Towards the end of 2021, there was a surge across global gas markets.

The price of oil jumped to seven-year highs, pushing revenues of several oil giants. While Chevron Corp. (NYSE: CVX) reported a net profit of $15.6 billion for 2021, Exxon Mobil (NYSE: XOM) said revenue for the year was $23 billion. Exxon Mobil’s revenue increased 80% year-on-year during the last quarter, its largest profit in seven years. As Exxon now finds itself in a more strengthened financial position, the company plans to buy back stock in Q1. Additionally, the oil company’s cash flow from operating activities hit $48 billion, its highest since 2012. Like BP, Exxon’s debt was also reduced by $20 billion in 2021.