August 8, 2022

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Oil major BP earnings Q2 2022

2 min read

A BP gas station in Madrid, Spain.

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LONDON — U.K. oil giant BP on Tuesday reported bumper second-quarter profits, benefitting from a surge in commodity prices.

The British energy major posted second-quarter underlying replacement cost profit, used as a proxy for net profit, of $8.5 billion.

That compared with a profit of $6.2 billion in the first three months of the year and $2.8 billion for the second quarter of 2021. Analysts had expected BP to report first-quarter profit of $6.3 billion, according to Refinitiv.

BP also announced Tuesday a 10% increase in its quarterly dividend payout to shareholders, raising it to 6.006 cents per ordinary share.

Shares of BP are up nearly 20% year-to-date.

BP’s results once again underscore the stark contrast between Big Oil’s profit bonanza and those grappling with a deepening cost of living crisis.

The world’s largest oil and gas companies have shattered profit records in recent months, following a surge in commodity prices prompted by Russia’s invasion of Ukraine.

For many fossil fuel firms, the immediate priority appears to be returning cash to shareholders via buyback programs.

Last week, BP’s U.K. rival Shell reported record second-quarter results of $11.5 billion and announced a $6 billion share buyback program, while British Gas owner Centrica reinstated its dividend after a massive increase in first-half profits.

Cost of living crisis

Environmental campaigners and union groups have condemned Big Oil’s surging profits and called on the U.K. government to impose meaningful measures to bring down the cost of rising energy bills.

Last month, a cross-party group of U.K. lawmakers called on the government to increase the level of support to help households pay rising energy bills and outline a nationwide plan to insulate homes.

A price cap on the most widely used consumer energy tariffs is expected to rise by more than 60% in October due to surging gas prices, taking average household yearly…



2022-08-02 02:17:00

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