August 18, 2022
Oil Major BP Earnings Q2 2022

A BP gas station in Madrid, Spain.

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LONDON – British oil giant BP on Tuesday posted a bumper profit in the second quarter, benefiting from a jump in commodity prices.

The British energy major posted an implicit replacement cost benefit in the second quarter, used as a proxy for net profit of $8.5 billion.

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

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

BP shares are up about 20% year-over-year.

BP’s results once again underscore the contrast between the bonuses of Big Oil’s profits and those grappling with a deep cost of living crisis.

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

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

Last week, BP’s UK rival Shell reported record second-quarter results of $11.5 billion and announced a $6 billion share buyback program, while British Gas owner Centrica cut its first-half profit margins after a huge first-quarter profit. Dividend restored.

cost of life crisis

Environmental campaigners and union groups have condemned Big Oil’s rising profits and called on the UK government to take meaningful measures to reduce the cost of rising energy bills.

Last month, a cross-party group of UK MPs called upon the government Outlining a nationwide plan to increase the level of support and to insulate homes to help families pay rising energy bills.

A price cap on the most widely used consumer energy tariffs is expected to rise by more than 60% in October as gas prices rise, pushing average household annual double fuel bills to more than £3,200 ($3,845) Huh.

Fuel poverty charity is National Energy Action warning That if it did, it would push 8.2 million households – or one in three British households – into energy poverty. Fuel or energy poverty refers to when a family is unable to heat their home to an adequate temperature.

“Clearly everyone is facing an energy crisis,” said energy campaigner Sana Yusuf of Friends of the Earth in response to Shell and Centrica’s results. “These bumper profits will be greeted with disbelief by millions across the UK who are facing rising energy prices.”

Yusuf called on the UK government to impose harsh unexpected taxes on energy firms. Yusuf said, “The bulk of these profits should be used to save our homes and help pay for their heating to cash-strapped families this winter, rather than developing the fossil fuel projects that are frying the planet.” should help.”

The burning of fossil fuels, such as oil and gas, is the main driver of the climate crisis and researchers have found that fossil fuel production remains “alarmingly out of sync” with global climate goals.

Speaking in June, UN Secretary-General Antonio Guterres called for the abandonment of fossil fuel finance, describing the new funding for fossil fuel exploration as “delusional”.

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