FTSE 100 movers: BP, banks on the front foot
By Michele Maatouk
Date: Tuesday 07 Feb 2023
(Sharecast News) - London's FTSE 100 was up 0.2% at 7,849.41 in afternoon trade on Tuesday.
BP surged to the top of the index after saying it more than doubled annual profits to a record $27.6bn as it cashed in on soaring gas prices. This fuelled more calls for the government to change windfall tax arrangements on energy companies as consumers face a 40% rise in household bills in April.
The full-year result compares with $12.8bn a year earlier. In the final three months of 2022 underlying replacement cost profit - its preferred measure - came in at $4.80bn, missing estimates of $5.04bn and well below $8.15bn in the third quarter.
BP's results follow those from rival Shell, which last week posted record yearly profits of almost $40bn as gas prices took off as Russia invaded Ukraine. Shell also rallied.
Russ Mould, investment director at AJ Bell, said: "Just as ExxonMobil's results angered The White House, which called its high profits 'outrageous', news that BP has recorded record profits is also likely to make the UK public's blood boil.
"The situation is no different to last time. Oil and gas companies have benefited from the spike in energy prices as a direct result of Russia invading Ukraine which causes various countries to rethink the source of their supplies. The big oil companies have made a load of money while consumers and businesses have suffered from their energy bills going through the roof. The nation says: 'Does that seem fair?'
"Politicians don't think so, hence the call for greater windfall taxes on these profits. Oil and gas firms have already seen their taxes increase, yet they've been able to offset some of this amount by accounting for investments in areas such as decommissioning oil platforms."
Banks were also on the rise, with Standard Chartered, HSBC, Barclays and Lloyds all up.
Education publisher Pearson was the worst performer, closely followed by Rentokil Initial and JD Sports.
FTSE 100 - Risers
BP (BP.) 510.40p 6.70%
Airtel Africa (AAF) 120.60p 2.73%
GSK (GSK) 1,496.00p 2.40%
BT Group (BT.A) 132.80p 1.88%
Shell (SHEL) 2,442.50p 1.83%
Standard Chartered (STAN) 682.00p 1.58%
HSBC Holdings (HSBA) 604.30p 1.39%
Barclays (BARC) 189.04p 1.34%
Lloyds Banking Group (LLOY) 53.53p 1.33%
Haleon (HLN) 334.20p 1.07%
FTSE 100 - Fallers
Pearson (PSON) 904.40p -2.52%
Rentokil Initial (RTO) 492.60p -2.42%
JD Sports Fashion (JD.) 177.90p -2.33%
Hargreaves Lansdown (HL.) 897.40p -2.29%
Rightmove (RMV) 588.40p -2.13%
SEGRO (SGRO) 848.60p -2.12%
Croda International (CRDA) 7,014.00p -2.07%
Flutter Entertainment (CDI) (FLTR) 12,700.00p -2.01%
Melrose Industries (MRO) 145.25p -1.99%
Unite Group (UTG) 1,003.00p -1.96%
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