BP profits highest in four years as Iran war pushes up oil price
Profits at BP have surged to a four-year high after the war in the Middle East pushed up oil prices. The oil giant reported a
Profits at BP have surged to a four-year high after the war in the Middle East pushed up oil prices. The oil giant reported a profit of $5.73bn (£4.26bn) between April and June. That was 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. The price of crude has jumped since the outbreak of the Iran war earlier this year due to major disruption to global supplies of oil and gas through the Strait of Hormuz.
Environmental and poverty campaigners blasted BP for "profiteering" off skyrocketing oil prices. Despite the big rise in profits, BP chief executive Meg O'Neill said the company was not reaching its full potential. The company, which employs nearly 14,000 people in the UK, confirmed plans to move further away from clean energy, revealing plans to sell off its US renewable natural gas business Archaea. O'Neill said this was part of her plan to prioritise "value, not sentiment or history". "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. Crude oil prices shot up after the outbreak of conflict in the Middle East, which in turn pushed up petrol and diesel prices and domestic energy costs around the world. 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.
Angharad Hopkinson, from environmental campaign group Greenpeace, said the results showed that "corporate gains have become entirely divorced from the public good". She said "the one point on which we agree with BP" is its decision to sell off its North Sea operations. "Prolonging this parasitic relationship by trying to squeeze the last few drops of expensive oil out of the North Sea is sheer folly," Hopkinson said.
The BriefWire