SHARE OF THE WEEK: All eyes on oil giant BP for its results

All eyes will be on oil giant BP on Tuesday for its results following a record performance from rival Shell.

With fellow British petrogroup posting annual profits of £32bn for 2022, investors will hope BP can deliver a similar feat.

Despite the fall in oil and gas prices from last year, shares are up about 17 percent since August as investors predict the end of China’s Covid restrictions will spark a surge in demand from the energy-hungry nation.

Weak output from sanctioned Russia, the United States’ need to replenish oil reserves and the Opec cartel’s apparent unwillingness to open up the taps could also work in the company’s favor by driving prices high. hold.

But this could be derailed by the threat of a global recession dampening demand.

With this in mind, investors will likely be eyeing BP’s outlook for the year following an expected strong set of results for 2022.

Analysts expect a result similar to that of Shell, with annual profit more than doubling.

Attention will be focused on BP’s tax bill in the UK and how much it will have to pay this year after Chancellor Jeremy Hunt raised windfall tax on North Sea profits from 25 per cent to 35 per cent – bringing the total burden to 75 per cent comes.

And climate-conscious analysts will be looking for comments on a renewable energy strategy following reports earlier this week that BP wants to scale back its green commitments in favor of cashing in on rapidly rising fossil fuel prices.

But such a decision is likely to increase pressure on politicians to rein in the industry. Shares rose 1.5 percent, or 7.25p, to 486.05p.