BP profits highest in four years as Iran war pushes up oil price
Higher oil prices boost the energy giant's results while environmental groups accuse it of profiteering.
BP has announced its highest profits in four years, reaching $5.73 billion (£4.26 billion) between April and June, a figure more than double the $2.35 billion reported in the same period last year. This marks the company's most profitable quarter since the beginning of the Russia-Ukraine war in 2022. The surge in profits is attributed to a rise in oil prices following the outbreak of the Iran war earlier this year, which has significantly disrupted global oil and gas supplies via the Strait of Hormuz.
Environmental and poverty advocacy groups have criticized BP, accusing the company of "profiteering" from the escalating oil prices.
Despite the substantial increase in earnings, BP chief executive Meg O'Neill stated that the company has not yet reached its full potential. BP, which employs nearly 14,000 individuals in the UK, also confirmed its intention to further divest from clean energy initiatives. This includes plans to sell Archaea, its US renewable natural gas business. O'Neill explained that this strategy is part of her focus on prioritizing "value, not sentiment or history," emphasizing the need to concentrate on "assets with the strongest potential to deliver competitive returns and long-term value."
Last week, BP revealed its decision to sell its North Sea business, a move that would conclude 60 years of the company's production in that region.
The conflict in the Middle East has led to a sharp increase in crude oil prices, subsequently driving up petrol and diesel prices, as well as domestic energy costs globally. BP reported that Brent crude, the international benchmark for oil prices, averaged $103.85 per barrel in the April-to-June quarter, a significant increase from $67.88 during the same period last year.
Angharad Hopkinson of the environmental campaign group Greenpeace commented that these results demonstrate how "corporate gains have become entirely divorced from the public good." She noted that the only point of agreement with BP is its decision to sell its North Sea operations, stating, "Prolonging this parasitic relationship by trying to squeeze the last few drops of expensive oil out of the North Sea is sheer folly."