BP reported mammoth profits of £6.9bn for the three months to June 2022, triple the amount for the same period last year, as household energy bills are forecast to climb to £3,420 this winter. The company's underlying profits for the second quarter reached $8.45bn (£6.9bn), bringing half-year profits to $14.6bn (£11.9bn).
Energy companies argue that most of their profits do not come from household bills and that much of the money is reinvested in green initiatives and energy security. However, campaigners say increased dividends to shareholders are unacceptable when customers' bills are spiralling out of control.
The price of Brent crude oil has risen from $72.89 a barrel last year to nearly $100 a barrel, having peaked at over $120 after the Russian invasion of Ukraine. Global supply has been restricted by the war, particularly in Europe, which relies heavily on Russian gas.
BP said it had seen 'exceptional' performance by its oil traders and improved refining margins. The company made an estimated $1.3bn in gas trading profits in the first three months of 2022 alone, accounting for around a third of its overall profits.
BP plans to invest around $15bn this year on initiatives including new wind farms and hydrogen projects. However, it also boosted its dividend by 10 per cent and plans to buy back $3.5bn of its own shares over the next three months.
Last week, British Gas owner Centrica reported half-year group profits of £1.3bn, a fivefold increase from the £242m recorded for the same period last year.
