BP profits almost treble as oil giant reports eye-watering £7billion gains amid cost-of-living crisis

BP has revealed second-quarter profits more than trebled as it reaped the benefits of soaring oil and gas prices

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The oil giant reported underlying replacement cost profits jumping to $8.5billion (£6.9billion) for the three months to June 30, up from $2.8billion (£2.3billion) a year ago.

The result is better than expected and will likely stoke further controversy over massive profits from oil and energy firms, following record profits from rival Shell and huge earnings from British Gas owner Centrica last week.

But BP’s reported half-year figures were affected by a massive $24.4billion (£19.9billion) hit from its move to ditch the firm’s near-20 percent stake in Russian oil producer Rosneft in response to the Ukraine war, leaving it with bottom line replacement cost losses of $15.4billion (£13billion).

BP reported eye-watering profits
BP reported eye-watering profits
Energy costs are crippling British households
Energy costs are crippling British households

BP chief executive Bernard Looney said: “Today’s results show that BP continues to perform while transforming.

“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.”

It comes as the cost-of-living cripples Brits across the country, with energy prices a key issue for households.

The 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.

At the same time, there are no tax incentives in the policy for green investment.

Households across Britain have been warned they could face an annual energy bill in excess of £3,600 this winter.

Energy consultant Cornwall Insight said a regular gas and electricity bill in England, Wales and Scotland could reach £3,615 in the new year, which is hundreds of pounds more than previous predictions.

In May, the Government announced an energy costs support package – worth £400 per household – in response to predictions that bills would rise to £2,800 for the average household in October.

Last month, Cornwall Insight predicted that annual energy bills would typically rise to £3,244 from October and £3,363 from January, but circumstances have changed significantly since then.