BP Plc (NYSE: BP) surges over 5.05% to trade at $36.63 on Tuesday early trading session after in a show of confidence, the company reported a record profit of $28 billion for 2022 while increasing its dividend, while sharply increasing overall spending plans and scaling back ambitions to reduce oil and gas output by 2030.

The record profit comes on the heels of similar reports from rivals Shell, Exxon Mobil, and Chevron last week, after energy prices skyrocketed in the aftermath of Russia’s invasion of Ukraine, prompting new calls to tax the sector as households struggle to pay their energy bills.

Three years after Chief Executive Bernard Looney took the helm with an ambitious plan to shift BP away from oil and gas and toward renewables and low-carbon energy, the company announced a $1 billion increase in annual spending in both sectors, with a greater emphasis on developing low-carbon biofuels and hydrogen.

However, it has scaled back plans to reduce oil output, now aiming to produce 2 million barrels of oil equivalent per day by 2030, a 25% reduction from 2019 levels compared to previous plans for a 40% cut.

While many investors supported Looney’s strategy, which he told Reuters “is working,” BP’s shares have been the worst performers among top Western energy companies since the CEO took office, remaining largely flat compared to Shell’s 17% gain and Exxon’s nearly 80% gain.

BP’s fourth-quarter underlying replacement cost profit, the company’s definition of net income, was $4.8 billion, narrowly missing a $5 billion forecast in a company-provided analyst survey, and compared to $4 billion a year earlier and $8.2 billion in the third quarter.

Weaker gas trading activity following a “exceptional” third quarter, higher refinery maintenance, and lower oil and gas prices all had an impact on the results. Despite a $25 billion writedown of its Russian assets, BP’s annual profit of $27.6 billion exceeded its previous record of $26 billion in 2008.

This enabled it to increase its dividend by 10% to 6.61 cents per share, after halving it in the aftermath of the pandemic, and to announce plans to repurchase $2.75 billion in shares over the next three months, following a $11.7 billion purchase in 2022.

BP reiterated plans to spend equally on the oil and gas business and its energy transition businesses through 2030, raising the total budget to up to $18 billion from a previously guided upper range of $16 billion. Transition businesses, such as renewables and EV charging, account for roughly 30% of the current budget, up from 3% in 2019.

“In contrast to its peers, it appears that criticisms of its renewables spending have begun to sting,” said Michael Hewson, Chief Market Analyst at CMC Markets UK.