BP has reported its highest quarterly profits since the first year of Russia's war on Ukraine, driven by rising oil and gas prices caused by the Middle East crisis. The oil company's profits more than doubled to $5.73bn (£4.27bn) in the three months to the end of June, up $2.5bn from the previous quarter, as ongoing conflict in the region continued to disrupt energy exports from the Gulf.
New CEO signals overhaul
Despite better-than-expected profits, new chief executive Meg O'Neill said there was "more to do" because BP was "not making the most" of its potential. O'Neill is expected to undertake an overhaul of the 117-year-old company, including a potential exit from the North Sea after six decades of production from the UK's oil and gas basin.
Speaking to CNBC, O'Neill said she had held a conversation with Andy Burnham, and that the new PM had "reinforced his desire to work closely with business" and be pragmatic. "The UK is still using a huge amount of oil and natural gas every single day, and we ought to be using our domestic resources first instead of buying those resources from a third party," she added.
Industry-wide profit surge
BP revealed its climbing profits days after Shell posted its second-highest quarterly earnings on record, doubling net profit to almost $10bn in the three months to June. Saudi oil company Aramco also saw a 44% rise in net profits to $32.69bn, despite disruptions in the Strait of Hormuz, owing to higher sales revenue for refined and chemical products and crude oil.
The windfall profits have faced criticism as households and businesses struggle with rising energy bills, and millions have been affected by severe heatwaves across Europe, made more likely by the climate crisis. Donald Trump has said Chevron and ExxonMobil, which also reported sharp profit increases, are "making too much money" and should return some profits to the public.
Rosie Downes, head of campaigns at Friends of the Earth, said: "Clearly not everyone is feeling the pain of the energy crisis. While BP banks another round of enormous profits, millions of households are paying the price through sky-high energy bills and a climate crisis accelerating rapidly out of control with increasingly severe heatwaves, wildfires and droughts."
