BP’s market capitalisation rose above £100 billion (€113 billion) for the first time in three years as shareholders rewarded the company for a pivot back toward its fossil-fuel origins.

The UK oil giant has jumped almost 19 per cent in London trading since announcing record annual profit earlier this week and a strategic shift to pump more oil and gas than previously planned, despite the impact on its climate goals.

[ BP reports record $28bn profit, rows back on cutting oil outputOpens in new window ]

BP’s decision has been welcomed by investors, who have at times punished European oil companies seeking to diversify into lower-return renewable power. Valuations have lagged behind US peers Exxon Mobil Corp and Chevron Corp, which have remained primarily focused on fossil fuels.

On Tuesday, BP reported underlying profits for last year of $27.7 billion (€25.9 billion), eclipsing the $26.3 billion it made in 2008 and more than double the $12.8 billion it reported after a strong 2021. – Bloomberg