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BP’s profit tripled to $8.5 billion due to rising energy prices

BPProfits tripled to $8.5bn (£7bn) in the latest quarter – a 14-year high – as families struggle to afford fast-growing households. electricity bills.

On Tuesday, the oil giant reported profits for the April-June period, up from $2.8 billion in the second quarter of 2021 and even higher than the $6.2 billion in profit it posted in the first quarter, which was the highest. for 10 years.

BP earned $14.7 billion this year – nearly triple the $5.4 billion in the first half of 2021.

“BP continues to build on its delivery track record in line with its disciplined financial structure,” Chief Financial Officer Murray Aukinloss said in a statement.

It follows fellow energy giants Shell, Centrica and TotalEnergies accused of receiving “obscene” profits last week due to struggling families facing a significant increase in their electricity bills. Shell reported record profits of $11.5 billion, doubling profits in one year.

That’s up from $5.5 billion in April-June 2021, representing a $6 billion increase in profits, and $9.1 billion in the first quarter of 2022.

Oil giant Shell also announced record Q2 earnings

(AP)

Earlier this year, Shell posted a fourteen-fold rise in quarterly earnings, prompting renewed calls for windfall tax to ease the burden of struggling families during the worsening cost-of-living crisis.

Rachel Reeves MP, Labour’s shadow chancellor, said in response to BP’s earnings shock report as energy prices continue to rise: “People are worried about energy prices going up again in the autumn, but we’re seeing stunning profits again oil and gas producers. .

“Labor has been arguing for months about a windfall tax on these companies to help reduce bills, but when the Tories finally turned around, they decided to give billions of pounds back to manufacturers in the form of tax breaks. This is completely wrong.

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

“But we can’t go on like this. Labor will cut energy bills for good with a clean energy sprint for own electricity, and a 10-year warmer homes plan will cut bills for 19 million homes with cold drafts.’

British Gas owner Centrica also announced record Q2 profits

(Archive PA)

BP chief executive Bernard Looney said the results showed the company “continues to operate during a transformation”.

“Our people continued to work hard throughout the quarter helping to solve the energy trilemma of secure, affordable and low-carbon energy. We do this by providing the oil and gas that today’s world needs, while at the same time investing to accelerate the energy transition,” he said in a statement.

The company’s results were better than expected and will fuel further controversy over the huge profits from oil and energy companies.

But BP’s reported half-year figures were hit by a huge $24.4bn (£19.9bn) loss from the divestment of its nearly 20 per cent stake in Russian oil producer Rosneft in response to the war in Ukraine, in resulting in a loss of $15.4 billion (£13 billion).

Commenting on the huge profits, Friends of the Earth campaigner Sana Yusuf said a tougher tax on the profits of oil and gas companies should be introduced.

“It is unbelievable that these companies are raising such huge sums in the midst of the cost of living crisis,” Ms Yusuf said. “The money raised should be used to help struggling families with skyrocketing electricity bills and to provide funding for a free home warming program – with a focus on those most in need.

“It’s surprising that energy efficiency is given such a low priority. A nationwide insulation program will reduce bills, lower energy consumption and reduce climate-changing emissions.”

BP’s profit tripled to $8.5 billion due to rising energy prices

Source link BP’s profit tripled to $8.5 billion due to rising energy prices

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