BP reports profits of £7bn as oil prices surge because of Ukraine war

BP made profits of astir £7bn successful the 2nd 4th of the twelvemonth arsenic it became the latest successful a procession of vigor companies to bask immense fiscal benefits from surging lipid prices during Russia’s penetration of Ukraine, adjacent arsenic families conflict successful a outgo of surviving crisis.

The FTSE 100 lipid institution connected Tuesday said its preferred measurement of profit, which it describes arsenic its underlying replacement outgo profit, roseate to $8.5bn (£6.9bn) betwixt April and June, up from $6.2bn successful the archetypal 3 months of the year, and $2.8bn successful the 2nd 4th of 2021.

BP had antecedently reported its highest quarterly nett for much than a decade successful the archetypal quarter.

Oil companies successful the UK and beyond person enjoyed booming net successful caller months arsenic vigor prices person risen, adjacent arsenic households astir the satellite person struggled with soaring bills. As Russia’s penetration grinds on, immoderate analysts person predicted the UK yearly vigor bills could leap to £3,850 successful the winter, 3 times what they were paying astatine the commencement of 2022.

Shell past week reported grounds quarterly profits of astir £10bn betwixt April and June, portion the British Gas owner, Centrica, made operating profits of £1.3bn, astir of which came from its lipid and state drilling division. Shell and France’s Total past week said they would springiness shareholders billions of dollars successful stock buybacks and dividends.

Energy bills person been an inportant contributor to inflation, which has jumped to a 40-year precocious of 9.4% successful the UK. Several forecasters judge ostentation volition determination supra 10% successful the coming months.

The UK authorities belatedly responded to governmental unit amid soaring vigor prices with a windfall taxation connected lipid companies’ “extraordinary profits”. However, the 25% tax, known arsenic the vigor profits levy, did not travel into unit until 14 July, meaning that it does not use to profits made by BP oregon different lipid companies during the 2nd quarter.

BP reports its ain replacement outgo nett measurement to bespeak its profitability earlier taking into relationship swings successful the worth of the lipid it has successful storage.