BP posts second largest first-quarter profit since 2012

May 2 (UPI) -- Continuing high gas and oil prices helped British energy giant BP post a $5 billion profit for the first quarter Tuesday, up $156 million on the October to December period but down almost $1.3 billion from last year's record result.

The result, the company's second best since 2012 was due primarily to an "exceptional" gas marketing and trading result, a lower level of refinery turnaround activity and a very strong oil trading performance, BP said in a news release.

The profits would have been even higher had they not been partly offset by lower liquids and gas realizations and lower refining margins, the company added, while the drop from the first quarter of last year was partly accounted for by a new 35% windfall tax under the government's Energy Profits Levy that saw BP pay $1 billion extra tax since summer 2022.

"This has been a quarter of strong performance and strategic delivery as we continue to focus on safe and reliable operations," said CEO Bernard Looney.

"Momentum continues to build across our integrated energy company strategy, with the start-up of [the Gulf of Mexico] Mad Dog Phase 2, our agreement to acquire TravelCenters of America and progress towards hydrogen and Carbon Capture and Storage projects in the U.K."

Looney said BP was continuing to deliver for shareholders through disciplined investment, lowering net debt and growing distributions.

The firm announced a $1.75 billion share buyback offer for the quarter -- although that was down from $2.75 billion last year -- and hiked the dividend investors will receive by 21% to 6.61 cents a share.

Ahead of local elections Thursday, the Labor opposition said such profit levels were unacceptable when people were dealing with record-high prices and called for even higher taxes on energy giants benefiting from North Sea oil and gas to keep ordinary people's taxes from rising.

"The Tories let energy companies make record profits while people struggle with the cost of living," Labor leader Keir Starmer said in a Twitter post ahead of local elections

"Labor would deliver a proper windfall tax on oil and gas giants to freeze council tax this year."

Council tax is an annual real estate tax to fund local services such as trash collection, social care, roads and police, but is paid by the occupants of homes regardless of ownership.

Shell, another of the British energy giants, is also expected to post bumper profits as high as $3.1 billion when it reports its first-quarter results on Thursday.