BP’s profits surged to a four-year high after conflict in the Middle East pushed up oil prices. The oil giant reported a profit of $5.73bn (£4.26bn) between April and June, more than double the $2.35bn it made in the same period last year and the highest quarterly profit since the start of the Russia-Ukraine war in 2022.
Crude prices have risen since the outbreak of the Iran war earlier this year, as major disruption to global oil and gas supplies through the Strait of Hormuz has helped drive up costs. The increase has also fed through to petrol and diesel prices and domestic energy costs around the world.
Why have BP’s profits risen so sharply?
BP said Brent crude, the global benchmark for oil prices, averaged $103.85 a barrel in the April-to-June quarter, up from $67.88 in the same period last year. The higher oil price was a major factor in the company’s stronger quarterly performance.
Environmental and poverty campaigners criticised the company for
profiteeringoff rising oil prices. Angharad Hopkinson, from environmental campaign group Greenpeace, said the results showed that
corporate gains have become entirely divorced from the public good.
What is BP planning to do next?
Despite the rise in profits, BP chief executive Meg O'Neill said the company was not reaching its full potential. She said the business would focus on assets with the strongest potential to deliver competitive returns and long-term value.
BP, which employs nearly 14,000 people in the UK, also confirmed plans to move further away from clean energy by selling off its US renewable natural gas business Archaea. O'Neill said this was part of her plan to prioritise
value, not sentiment or history.
She added:
We have to focus on the assets with the strongest potential to deliver competitive returns and long-term value,she said.
Last week, BP announced it was putting its North Sea business up for sale in a move that would end 60 years of production in the region by the company.
How have campaigners responded to the North Sea plans?
Campaigners welcomed BP’s North Sea decision while criticising the broader impact of the company’s oil strategy. Hopkinson said
the one point on which we agree with BPis its decision to sell off its North Sea operations.
She added that
Prolonging this parasitic relationship by trying to squeeze the last few drops of expensive oil out of the North Sea is sheer folly.
The company’s latest results come amid heightened scrutiny of oil majors as global energy prices remain elevated and governments and households continue to face higher costs.
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