LONDON, England: British Petroleum has reported a record profit of $28 billion for 2022 and increased its dividend, in line with similar reports from rivals Shell, Exxon Mobil and Chevron.

Following the record profits caused by surging energy prices after Russia's invasion of Ukraine, many have called for additional windfall taxes to be paid by the oil sector, as households are struggling to pay energy bills.

Since taking over three years ago, CEO Bernard Looney has put in place an ambitious plan to transition the company away from oil and gas and towards renewables and low-carbon energy, as BP said it will increase annual spending in both sectors by $1 billion, while prioritizing developing low-carbon biofuels and hydrogen.

"We need lower carbon energy, but we also need secure energy, and we need affordable energy. And that is what governments and society around the world are asking for," Looney said.

BP's fourth-quarter underlying replacement cost profit, its definition of net income, of $4.8 billion narrowly missed its forecast of $5 billion, due to weaker gas trading activity after an "exceptional" third quarter, higher refinery maintenance and lower oil and gas prices.

In 2022, despite a $25 billion write-down of its Russian assets, BP's $27.6 billion profit exceeded its 2008 record of $26 billion.

BP reiterated its plans to divide its spending equally between the oil and gas business and its energy transition businesses to 2030, while increasing its total budget to $18 billion from $16 billion.