British energy giant BP recorded a surge in profit to $12.8 billion in 2021, the highest in eight years. The company's main profit indicator advanced in the fourth quarter on soaring commodity prices. The rise in prices was caused by a reduction in supplies from Russia and Norway as well as high demand for energy products.
Taking advantage of the situation, BP began to buy back its own shares. Last year, the company repurchased over 1.7 billion of stock. Moreover, the oil giant intends to execute another share buyback worth $1.5 billion. In addition, the British firm maintained its dividend at $5.46 per share. Thus, BP's market capitalization has risen by 59% to $80.11 billion over the past 12 months.
Analysts at top investment bank Goldman Sachs predict that oil prices could rise above $100 per barrel driven by global demand, production cuts by some OPEC + member countries, as well as high manufacturing activity in China.
