Company follows Shell in benefiting from energy crisis.

Oil and gas giant BP on Tuesday reported a massive upswing in full-year net profit, its highest in eight years, supported by soaring commodity prices.

BP’s annual profits reached an eight-year high of $12.8bn in 2021 as it benefited from a surge in energy prices, prompting renewed calls for a windfall tax on fossil fuel companies to relieve the financial pressure on households facing a sharp rise in bills. BP also posted fourth-quarter net profit of $4.1 billion, beating analyst expectations of $3.9 billion.

Natural gas and electricity prices have soared since last summer because of tight gas supplies and rising demand as economies bounced back from the pandemic, and the standoff between Russia and Ukraine pushed gas prices higher.

BP said it intends to deliver a further $1.5 billion in share buybacks and maintained its dividend at 5.46 cents per share.

“It has been another good quarter for the company,” said CEO Bernard Looney. “We call it performing while transforming,” Looney said. “I know I sound like a broken record but that is what we are doing. We are performing and delivering for our shareholders today, while at the same time leaning into the future and transforming the company.”

Britain’s energy regulator Ofgem on Thursday announced a 54% increase to its price cap from April. It means U.K. households could see their energy bills rise by around $946 a year, with an estimated 22 million households forecast to see their energy costs increase.