from Hacker News

BP sees biggest profit in 114 year history

by sarreph on 2/7/23, 8:13 AM with 79 comments

• by hinata08 on 2/7/23, 9:24 AM

  >Reported record annual profits after oil and gas prices surged last year following Russia's invasion of Ukraine.

  I'm surprised by how short termed is the strategy to actually keep up with 'market' prices. (which they don't have to do, as their workforce and costs are basically staying the same, hence a hike in price increases profits)

  They make higher profit now. But how much demand destruction will happen in the long term ?

  I myself just got an ebike to commute, which comes with a nearly 100% reduction in energy use. And I'm not alone. There isn't any traffic jam anymore to commute to where I work, because remote working is becoming widespread (first because of covid, and now gas prices), so much fewer drivers are using their cars.

  The local government has eventually passed laws to require landlords to properly thermally insulate homes (within a decade)

  Trains were scheduled again, and became popular. I no longer hear about someone driving across the country. They would just get a train (which also comes with huge energy savings)

  I'm surprised because the current hike isn't even fueling demand for EVs (as recharging your EV is now as expensive as getting a full tank in public spots)

  Ppl are just shifting away from cars and some energy intensive usages, this time.

• by blitzar on 2/7/23, 9:34 AM

  They booked loses of ~25bn on Russian projects on the way to making a profit of 27bn for the year.

  Guessing the accountants wrote down everything else they could to keep the headline number as low as possible.

• by walthamstow on 2/7/23, 10:26 AM

  > biggest profit in 114 year history

  I hate stats like this. Of course it's the biggest ever, there is more money in circulation than ever before.

  You see this in politics a lot, a classic from the Teresa May era was "there are more kids going to schools rated Good by Ofsted than ever before." There are more kids alive than ever before, so it's not much of an achievement is it.

• by clouddrover on 2/7/23, 10:29 AM

  > The company's profits more than doubled to $27.7bn (£23bn) in 2022, as energy prices soared after Russia invaded Ukraine.

  Ah, the 34th Rule of Acquisition: War is good for business.

  https://memory-alpha.fandom.com/wiki/Rules_of_Acquisition

• by zelphirkalt on 2/7/23, 9:41 AM

  All while we are trying to get away from fossile fuels. At least superficially there is a mismatch here, between the profits and some perceived Zeitgeist.

  Does BP do many other things, besides fossile fuels?

• by fiftyacorn on 2/7/23, 10:37 AM

  It annoys me that these companies aren't subject to a windfall tax. These profits are driven by the Russian embargos following the invasion of Ukraine

  The most annoying thing is that when the price slumps again these companies will be back cap in hand for money to decommission their oil rigs

• by LatteLazy on 2/7/23, 8:55 AM

  >Oil and gas firms also pay 30% corporation tax on their profits as well as a supplementary 10% rate. Along with the new windfall tax, that takes their total tax rate to 75%.

  So that's a huge win for the Exchequer...