BP has revealed second-quarter profits more than trebled to a 14-year high, as it joined rival Shell in reaping the benefits of soaring oil and gas prices.
It reported underlying replacement cost profits - its preferred measure - up to a better-than-expected £6.9bn for the three months to 30 June, from £2.3bn a year ago.
BP also confirmed a 10% rise in the dividend shareholder payout, ramping up its share buyback plan with another £2.9bn due before the end of September.
Yet the result comes as households are struggling to meet rocketing bills and anger is mounting anger over massive profits from oil and energy firms, following bumper results from Shell and British Gas owner Centrica last week.
BP also warned that there is not expected to be any let up with energy prices over the summer, forecasting that crude oil and gas prices will remain high over the third quarter due to supply disruption from Russia.
Households across Britain have been warned they could face an annual energy bill of £3,615 this winter in the latest analysis by energy consultant Cornwall Insight.
The UK Government is introducing a windfall tax on the profits of energy companies, but it has faced criticism for giving strong incentives to allow companies to invest in oil and gas, while there are no tax incentives in the policy for green investment.
But BP’s reported half-year figures were impacted by a £19.9bn hit from the firm’s move to ditch its near-20% stake in Russian oil producer Rosneft in response to the Ukraine war.
This left it with statutory replacement cost losses of £13bn, against profits of £4.7bn a year earlier.
BP chief executive Bernard Looney insisted the group was continuing to “perform while transforming”, adding: “Our people have continued to work hard throughout the quarter helping to solve the energy trilemma – secure, affordable and lower carbon energy.
“We do this by providing the oil and gas the world needs today – while at the same time, investing to accelerate the energy transition.”
Stuart Lamont, investment manager at Brewin Dolphin, commented: “BP has mirrored Shell’s exceptional results last week – albeit, with the disposal of its stake in Rosneft hanging over the first six months of 2022.
“Shareholders will be pleased that this is being converted into returns, with 60% of surplus cashflow being distributed to them through dividends and share buybacks.
“However, BP’s and its peers’ results are also likely to attract further political attention, which is becoming a real risk for the future.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
