Oil giant BP contributed £7.4billion to the UK economy and supported nearly 60,000 jobs last year, says a report that comes as it fights for independence.
The report from Oxford Economics, to be published later today, reveals that the FTSE 100 firm generated the equivalent of £1 of every £380 of value added to the economy in 2024.
That amounted to as much as the entire broadcasting industry, and was not far behind the entire British aircraft manufacturing and entertainment sectors, which generated £10.7billion and £9.3billion respectively, it said.
The data, part of an annual report tracking BP’s impact on the UK economy, comes at a critical time for the British firm as it finds itself subject to growing speculation that it could be forced into an unwanted merger.
It shows BP paid £1.2billion in tax last year and collected another £2.2billion in the form of excise duty, employee income tax and National Insurance and VAT.
The £3.4billion total is equivalent to 0.4 per cent of HMRC’s tax receipts for 2024.
Powerhouse: A report from Oxford Economics reveals that BP generated the equivalent of £1 of every £380 of value added to the economy in 2024
The report comes as a weak share price performance and uncertainty about its leadership have fuelled speculation BP could be targeted by a takeover swoop from one of its rivals.
The stock is currently 17.5 per cent lower than it was 12 months ago, despite a recent boost this week caused by a spike in global oil prices.
BP is seen as a tempting target for one of the US oil giants such as Chevron, or a British bid from Anglo-Dutch rival Shell.
Reports have also emerged that Adnoc, an oil firm backed by the government of the United Arab Emirates, is mulling a swoop on BP’s natural gas fields.
Adnoc’s international unit, XRG, through which it is said to be planning any bid, also counts ex-BP boss Bernard Looney among its board members.
Aside from its contribution to the UK’s economic output and tax income, BP’s report also stressed that it employed 15,675 people in Britain and supported another 59,000 jobs through its supply chain.
BP’s fight for its independence comes as it seeks a chairman with current incumbent Helge Lund due to step down next year.
The hunt for a strong replacement is being led by Amanda Blanc, BP’s senior non-executive director, who is also the boss of insurer Aviva.
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