BP p.l.c. (BP) reported earnings on Tue 7 Feb 23 (b/o)

 ** charts after earnings **

 

Earnings came in at $1.59 a share, up 29%. Revenue topped expectations, rising almost 33% to $69.3 billion. Free cash flow shot up 29% to $5.33 billion.

For the year, BP's posted profit of $27.6 billion, or $8.74 per share. That topped its previous record of $26 billion from 2008. The 2022 results included a $25 billion write-down on loss of Russian assets.

The big strategic shift that BP announced on Tuesday signals that the world may be headed for a new energy supercycle, one that could boost the fortunes of oil and gas and renewable energy all at once.

Starting around 2020, big oil companies, particularly in Europe, unveiled long-term strategies that included less drilling for fossil fuels and more investments in clean energy. BP ‘s (ticker: BP) new strategy sends a slightly different message: In the near term, the world’s going to need more of both. The London-based energy company says it will phase out oil and gas more slowly than previously expected, while ramping up clean energy faster than it had anticipated. All told, the changes could result in its capital spending increasing by double-digits in the near-term, amounting to a boost of about $2 billion this year. “We are growing our investment into our transition and, at the same time, growing investment into today’s energy system,” said CEO Bernard Looney.