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BP Reports Record Profit and Increases Dividends, Investing in Renewable Energy and Oil and Gas

BP has reported a record full-year 2022 adjusted profit of $27.6 billion and announced a 10% increase in shareholder dividends and an extension of the company’s share buyback programme.[0] As a result of Russia’s war in Ukraine, countries are looking to prioritize domestic renewable energy sources as a way to increase security of supply while also cutting carbon emissions.[1] However, BP has scaled back its climate ambitions and lowered its emissions reduction target from 35-40% to 20-30% by the end of this decade.[2]

The company will begin investing the same amount, $8 billion annually, each on oil and gas development and on non-fossil fuel projects it calls its energy “transition growth engines” — biofuels, hydrogen fuel, solar and wind, electrical power and EV charging. BP announced it will pay $2.2 billion in 2022 for the North Sea, constituting less than 10% of global profits, including $700 million due to the Energy Profits Levy (EPL).

BP reported that its total taxes incurred globally amounted to $15 billion, its highest amount ever in a single year.[3] The North Sea, which contributes less than 10% of global profits, will be subject to $2.2 billion in taxes for 2022, including $700 million from the UK's energy profits levy (also known as the windfall tax) – a lower amount than the $800 million estimated in the previous year due to declining gas prices.

Last week, Shell, Exxon Mobil, and Chevron reported record-breaking profits.[4] BP's earnings for Tuesday follow the reports from Exxon Mobil, Chevron and Shell (SHEL) that together amounted to more than $132 billion in profit for the 2022 fiscal year.[5] Over the course of the year, the three energy giants distributed a total of $78 billion to their shareholders in the form of buybacks and dividends.[5]

BP is still committing up to $8 billion to their oil and gas assets, even though they plan to increase investment in their renewable businesses. Low carbon hydrogen plays a critical role in helping the energy system to decarbonise, including in shipping, over the outlook period, BP says in its latest annual energy report. BP stated that low-carbon hydrogen will be significant in the decarbonization of the energy system, particularly in contexts which are challenging to reduce emissions in industry and transport.

0. “BP expects ‘majority' of its transition business to align with EU green taxonomy” Upstream Online, 7 Feb. 2023,

1. “Russia's War in Ukraine is Accelerating the Shift Away From Oil and Gas, BP Says” Financial Post, 30 Jan. 2023,

2. “BP Pivots On Climate Promises”, 7 Feb. 2023,

3. “BP scales back climate goals as profits more than double to £23bn” The Guardian, 7 Feb. 2023,

4. “BP hikes spending for energy transition” Greentech Lead, 7 Feb. 2023,

5. “BP Stock Jumps On Mixed Q4, Throttles Back On Renewables” Investor's Business Daily, 7 Feb. 2023,