BP reports second-quarter profit of £6.9 billion – highest in 14 years | Business newsletter

BP reported a second-quarter profit of £6.9 billion ($8.45 billion) – a 14-year high – at a time when consumer fuel prices were at record highs.

BP’s underlying replacement cost profit, the company’s definition of net income, was the strongest since 2008 and topped analyst expectations of £5.6 billion ($6.8 billion). USD).

That compares to a profit of £5.12 billion ($6.25 billion) in the first three months of 2022 and £2.29 billion ($2.8 billion) a year earlier.

It comes as UK households face a deepening cost of living crisis, with rising wholesale energy prices being a major factor.

Houses across Britain were warned on Tuesday that their annual energy bills could rise to an average of £3,615 this winter, after energy consultant Cornwall Insight increased its forecast in advance. That’s hundreds of pounds.

It also comes days after record profits were reported by rival Shell, as well as the two largest US oil companies – Exxon Mobil and Chevron.

BP said Tuesday that it increased its dividend 10% to 6,006 cents per share – more than its previous guidance of a 4% annual increase.

But it hit £19.9 billion ($24.4 billion) after giving up nearly 20 percent of its stake in Russian oil producer Rosneft in response to the Ukraine war.

BP Chief Executive Officer Bernard Looney said: “Today’s results show that BP is continuing to operate while transforming.

“Our people have continued to work hard throughout the quarter to solve the energy dilemma – safe, affordable and lower carbon energy.

“We do this by providing the oil and gas the world needs today – while investing to accelerate the energy transition.”

Record cash flows into energy companies have calls for a return to a tougher income tax rate on additional profits from oil and gas, the price has skyrocketed like Russia Invades Ukraine and threatened to cut off gas supplies to Europe.

‘People need more protection’

Rachel Reeves MP, Labour’s shadow chancellor, said: “People are worried about energy prices rising again in the fall, but again we see attractive returns for producers. Oil and Gas.

“Labour argued for months about imposing favorable taxes on these companies to help ease the bills, but when the Tories finally returned, they decided to return billions of pounds to the employers. produce to get tax relief.That’s completely wrong.

“It’s clear that people need more protection against rising bills. That’s why Labor is going to use this money now to get people through the winter.

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“But we can’t go on like this. Labor will bring energy bills down nicely with a green energy sprint for home power generation, and a warm home in 10 years can plan to cut bills for 19 million cold, wet homes.”

‘Laugh out loud when you go to the bank’

Doug Parr, Principal Scientist at Greenpeace UK, said: “While households are falling into poverty with severe impacts on the economy as a whole, companies are also mired in poverty. Fossil fuels are laughing at the bank.The government is failing in the UK and the climate in its hour of need.

“The government must introduce an appropriate tax rate on these huge profits and stop giving companies large tax breaks on destructive new fossil fuel investments.

“This could unlock billions of pounds to reduce household bills and fund a nationwide rollout of home insulation, which will keep bills low and under control.” control our UK use of fossil gas.”