BP sees profit double, braces for windfall tax

STORY: BP said Tuesday (November 1) that profits more than doubled in the third quarter.

They hit $8.15 billion, lifted by strong natural gas prices.

That was far ahead of analyst forecasts.

And comes after bumper numbers for peers including Shell and ExxonMobil.

Now the oil giants are bracing for the possibility of higher taxes.

This week, U.S. President Joe Biden called on such firms to stop what he called “war profiteering”.

He threatened to hit them with tax hikes if they don’t increase production.

In the UK, BP says it expects to pay about $2.5 billion in taxes on its North Sea business.

That includes about $800 million in a windfall tax.

The firm expects global gas prices to stay volatile in the fourth quarter due to a lack of supply into Europe.

That follows Russia’s move to slash pipeline deliveries to the region.

Refining margins are also expected to stay strong due to sanctions on Russian crude and refined products.

BP says it plans to press ahead with big stock buybacks over the coming quarter.