BP posts record 2022 earnings to join Big Oil profit bonanza
Oil major BP on Tuesday reported record annual profits, more than doubling last year’s total as fossil fuel prices soared following Russia’s full-scale invasion of Ukraine.
The British energy giant posted underlying replacement cost profit, used as a proxy for net profit, of $27.7 billion for 2022. That compared with $12.8 billion for the previous year.
Analysts polled by Refinitiv had expected net profit of $27.6 billion for full-year 2022. BP said its previous annual profit record was $26.3 billion in 2008.
For the fourth quarter, BP posted net profit of $4.8 billion, narrowly beating analyst expectations of $4.7 billion.
BP announced a further $2.75 billion share buyback, which it expects to complete prior to announcing its first-quarter 2023 results in early May. It also boosted its dividend by 10% to 6.61 cents per ordinary share.
BP CEO Bernard Looney described the earnings as “a good set of results.”
“First of all, I hope you can see a company that is performing well, performing while transforming. We had our highest operations reliability in our history, we had the lowest production cost in 16 years so the business itself is running very well,” Looney told CNBC’s “Squawk Box Europe” Tuesday.
“Secondly, we’re leaning into our strategy today. We’re announcing up to $8 billion more investment into the energy transition this decade and up to $8 billion more into oil and gas in support of energy security and energy affordability this decade,” he added. “And thirdly, it’s about making sure we return to our shareholders.”
BP said fourth-quarter net debt was reduced to $21.4 billion, down from $30.6 billion when compared to the same period a year earlier.
Shares of BP rose over 4% during early morning deals in London.
The extraordinary scale of the oil and gas industry’s earnings has renewed criticism and sparked calls for higher taxes.
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The results see BP join Big Oil’s profit bonanza.
British rival Shell on Thursday posted its highest-ever annual profit of nearly $40 billion. Before that, U.S. oil giant Exxon Mobil reported a $56 billion profit for 2022, marking a historic high for the Western oil industry. Chevron‘s 2022 profits came in at a record $36.5 billion.
The West’s largest fossil fuel companies are expected to have raked in combined profits of almost $200 billion for the year, according to Refinitiv data. France’s TotalEnergies is slated to report full-year earnings on Wednesday.
The extraordinary scale of the earnings has renewed criticism of the oil and gas industry and sparked calls for higher taxes.
“People across the country need look no further than their own front door – one of Britain’s own oil companies – which has been making records profit while so many Brits face hardship through no fault of their own,” said Jonathan Noronha-Gant, senior campaigner at advocacy group Global Witness.
“Implementing a windfall tax to aid those struggling financially, paired with a significant increase in renewable energy and home insulation, could be the start of the end to the damaging fossil fuel era, both for people and the planet. BP is richer because you’re poorer,” Noronha-Gant said.
John Moore, senior investment manager at RBC Brewin Dolphin, said BP’s record results underpinned the dividend increase and additional share buybacks.
“It’s fair to say that following the period covered by these results the oil price has weakened, while BP is also emphasising its investment in renewables and its commitment to changing how the company operates,” Moore said.
“But, even allowing for these factors, there will inevitably be a backlash against today’s results in the current climate. They will only add to calls for political intervention at some point in the near future.”
‘Energy trilemma’
In recent quarters, Big Oil executives have sought to defend their rising profits and said the significant disruption to global energy markets due to the war in Ukraine has reaffirmed the importance of solving “the energy trilemma.”
According to a statement to investors from BP’s Looney late last year, this refers to “secure, affordable and lower carbon energy.”
BP, which in 2020 set out its ambition to become a net zero company “by 2050 or sooner,” recently predicted that oil and gas would become a dramatically smaller part of the global energy mix by the middle of the century.
In its latest annual energy outlook, published on Jan. 30, the company said it sees the share of fossil fuels as a primary energy source falling from 80% in 2019 to between 55% and 20% by 2050. The share of renewables in primary energy, meanwhile, was projected to grow from 10% to between 35% and 65% over the same time period.
The wide range of outcomes reflects several possible paths for the energy transition. But in each of BP’s three scenarios, the pace with which renewables enter the global energy system is “quicker than any previous fuel in history,” the report said.
— CNBC’s Catherine Clifford contributed to this report.
Isuzu is giving Red Bull electrified wings – the iconic drinks company is officially the first to put the production version of its new-for-2025 Isuzu NRR-EV medium duty electric box truck to work in North America.
Deployed by Red Bull North America, these first-ever customer Isuzu NRR-EV medium duty trucks are busy delivering cans of Red Bull products throughout Southern California with zero tailpipe emissions, marking the first time the best-selling low-cab/cabover box truck brand in the US can make such a claim.
“Today marks a major milestone for the industry and for us. Watching the NRR-EV evolve from a concept to a viable operating product is a big deal,” explains Shaun Skinner, President of Isuzu Commercial Truck of America. “Our teams and our clients have put so much time and effort into making this happen, and it speaks to our teamwork and dedication to more sustainable transportation solutions. It is no longer just a plan, we have zero-emission trucks serving our customers’ needs!”
The NRR-EV is available with a number of different battery configurations, ranging from three 20 kWh battery packs (60 kWh total) up to nine 20 kWh battery packs, with five and seven pack options in between. The nine-pack version is good for up to 235 miles of range with a 19,500 lb. GVWR. The batteries, regardless of configuration, send power to a 150 kW (200 hp) electric motor with 380 lb-ft. of torque available at 0 rpm.
For “Red Bull” duty, the Isuzu trucks ship with a 100 kWh total battery capacity, and are fitted a lightweight, all-aluminum 6-bay beverage body, the vehicle’s design maintains its cargo capacity. The NRR-EV’s 19,500 lb. GVWR (Class 5) chassis, combined with the lightweight body and “big enough” battery spec provides Red Bull’s delivery drivers a hefty, 9,000 lb. payload.
Isuzu began assembling NRR-EV trucks at its Charlotte, Michigan assembly plant in August 2024. Customer deliveries are set to begin nationally in Q1 of 2025.
Electrek’s Take
Isuzu’s N-series trucks are everywhere – and for good reason. They’re dependable, they’re affordable, and they have a nationwide network of GM dealers supporting them. I am a huge fan of these trucks, and can’t wait to sample the electric version from behind the wheel.
SOURCE | IMAGES: Isuzu.
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Hyundai is gearing up to launch its first all-electric minivan. Production is set to begin next year, and the EV minivan is expected to play a key role in its global expansion. Here’s what to expect.
Hyundai will launch its first EV minivan in 2025
The Staria is Hyundai’s successor to the Starex, its multi-purpose vehicle (MPV), launched in 2021. Like its replacement, the Staria is offered in a minivan, minibus, van, pickup, and several other configurations like limousines and ambulances.
Although the Staria was launched with only diesel and gas-powered powertrain options, Hyundai added its first hybrid model in February.
Hyundai will introduce the Staria Electric, its first electric minivan, next year. In March, Hyundai unveiled its new ST1 electric business van, which is based on the Staria. However, the minivan will get its own EV model in 2025. The ST1 is Hyundai’s first commercial EV. It’s available in refrigerated van and basic chassis cab options.
Hyundai is already building gas-powered and hybrid Staria models at its Ulsan plant in Korea, but it is preparing to begin producing the EV version.
According to the Korean media outlet Newsis, sources close to the matter on Friday said Hyundai will begin converting a production line (Line 1) at its Ulsan Plant 4 for Staria Electric around January 25, 2024.
The expansion is part of Hyundai’s broader plan to introduce 21 electric vehicles by 2030, accounting for over 2 million in sales.
A report from The Korean Economic Daily in June claimed Hyundai would expand Staria EV production into Europe starting in the first half of 2026. European-made models will be sold domestically and overseas, like in Australia and Thailand. Hyundai aims to sell 15,000 to 20,000 of the EV model annually.
The Staria Electric will be powered by Hyundai’s fourth-generation 84 kWh EV batteries and will have over 10% more capacity than the ST1.
Hyundai sold 37,769 Starias through the first 11 months of 2024. Last year, Hyundai Staria sales reached 39,780, including domestic and export sales. By the end of the year, Staria sales are expected to exceed 40,000 for the first time.
Hyundai’s sister company also has big plans to expand its commercial business with a new lineup of EVs based on its PBV (Platform Beyond Vehicle). Its first electric van, the PV5, was spotted earlier this year as a potential Volkswagen ID.Buzz challenger.
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Just a year after it hit the 1 million electric mile mark, Schneider National ($SNDR) and its unmistakable orange semi trucks have thrown down the gauntlet – adding more than 5 million miles to its BEV tally and crossing the 6 million electric mile mark!
The company says this latest all-electric milestone means Schneider has cut more than 20 million pounds of harmful carbon emissions. A total it says is equivalent to removing more than 2,100 gas-powered passenger cars from the road.
“Reaching 6 million zero-emission miles is a testament to our steadfast dedication to sustainability and innovation,” said Schneider President and CEO, Mark Rourke. “Leading the way in adopting electric vehicle technology not only benefits the environment but also serves as an example of the broad service capabilities and flexibility we can offer to customers.”
Schneider operates one of the largest fleets of Freightliner eCascadia electric semi trucks in the country, with fully 92 of the BEVs deployed (so far). The trucks have been operating in and around the ports of Southern California, where they have significantly reduced emissions and contributed to cleaner air quality while reliably transporting freight and saving SNDR money.
“Schneider is a great example of the kind of forward-thinking entrepreneurship our industry needs,” says David Carson, Senior Vice President, Sales and Marketing at DTNA. “They’ve achieved over 6 million zero emission miles, which is a reminder for us all to keep working on overcoming challenges together on the path to zero emissions. At DTNA, we’re committed to the shift to zero emissions, alongside pioneers like Schneider, who are showing us what’s possible.”
Fifty of Schneider’ 92 eCascadias were funded by JETSI – a California-wide initiative working to reduce greenhouse gas emissions. Of the remaining 42 five are jointly funded by the EPA’s FY18 Targeted Airshed Grant, seven are funded by the Volkswagen Environmental Mitigation Trust, and 30 are funded by California’s HVIP incentive program.
Electrek’s Take
Schneider is among the many global fleets that are proving the reliability and efficacy of battery-electric semi trucks every day, racking up millions of miles faster than many of the nay-sayers thought would be possible. The only real question facing the world of electric trucking now is whether the legacy brands like Freightliner and Volvo have established an insurmountable lead over Tesla.
SOURCE | IMAGES: Schneider, via BusinessWire.
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