The British energy major posted full-year underlying replacement cost profit, used as a proxy for net profit, of $12.8 billion. That compared with a net loss of $5.7 billion the previous year.
Analysts polled by Refinitiv had expected full-year net profit of $12.5 billion.
BP also posted fourth-quarter net profit of $4.1 billion, beating analyst expectations of $3.9 billion.
Shares of BP are up over 23% year-to-date.
A surge in global gas markets through the final months of 2021, coupled with an oil price rally to seven-year highs, has seen the world’s largest fossil fuel giants rake in bumper revenues.
Shell CEO Ben van Beurden described 2021 as a “momentous” year. As a result, the company outlined plans to buy back $8.5 billion in shares in the first half of the year and said it expects to increase its dividend by 4% to $0.25 per share in the first quarter.
Stateside, oil giants Chevron and Exxon Mobil reported net profits of $15.6 billion and $23 billion, respectively, a huge upswing compared to the year prior when the coronavirus pandemic hit oil demand.
Oil demand
Global oil demand roared back in 2021, with gasoline and diesel use surging as consumers resumed travel and business activity recovered amid the coronavirus pandemic. Indeed, the International Energy Agency has noted mobility indicators remain robust even as Covid-19 is once again causing record infections.
It marks a dramatic shift from 2020 when the oil and gas industry endured a dreadful 12 months by virtually every measure.
Energy majors are seeking to reassure investors they have gained a more stable footing two years after Covid-19 first shook markets, and as shareholders and activists pile pressure on the firm’s executives to take meaningful climate action.
The world’s largest oil and gas companies have all sought to strengthen their climate targets in recent years, but so far none have given investors confidence their business model is fully aligned to Paris Agreement targets.
To be sure, it is the burning of fossil fuels such as oil and gas that is the chief driver of the climate emergency.
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