BP profits double to $5.7bn as Middle East conflict drives up oil prices
BP profits have more than doubled to reach their highest level since the outbreak of the Russia-Ukraine war in 2022 as the ongoing conflict in the Middle East severely disrupts global energy supplies.
The oil and gas giant reported second-quarter earnings of $5.73bn (£4.26 bbn) between April and June. This is a steep increase from the $2.35bn generated during the same period last year. A major disruption to supply routes through the Strait of Hormuz linked to the war in Iran caused Brent crude to average $103.85 a barrel during the quarter, compared with just $67.88 a year earlier. This commodity surge subsequently pushed up petrol and diesel prices alongside domestic household energy costs worldwide.
The financial windfall has boosted the entire sector, with rival Shell also reporting doubling in quarterly profits last week. However, the soaring revenues have drawn political scrutiny. US President Donald Trump publicly criticised American competitors ExxonMobil and Chevron for making excessive amounts of money. He told reporters that while he supports free enterprise, the companies ought to return some of that wealth to the public by cutting consumer retail prices immediately.
Strategic shift away from renewables
Despite reporting bumper profits, BP Chief Executive Meg O’Neill stated the company is still not reaching its full financial potential. The corporation, which employs nearly 14,000 workers in the UK, outlined a decisive pivot away from clean energy investments. BP confirmed plans to sell Archaea, its US renewable natural gas business. O’Neill stressed that corporate strategy must prioritise long-term competitive returns and value over sentiment or historical commitments.
Additionally, the company announced last week it will sell its North Sea operations, marking an end to 60 years of regional production. Russ Mould, investment director at AJ Bell, suggested these divestments are designed to streamline operations. He noted that executive leadership understands commodity prices will not remain indefinitely high, making it essential to ensure the business prospers even when market conditions become less helpful.
Backlash over rising energy poverty
The financial results triggered condemnation from environmental and anti-poverty campaigners. Angharad Hopkinson of Greenpeace said the earnings report proves that corporate gains have become entirely divorced from the public good. While she agreed with BP’s decision to abandon the North Sea, she characterised the firm’s historical extraction efforts as a parasitic relationship and called the attempt to squeeze the remaining expensive oil from the region sheer folly.
Simon Francis, coordinator of the End Fuel Poverty Coalition, noted that energy companies are banking billions from a geopolitical crisis that continues to cause immense hardship for millions. He called on the government to utilise windfall tax receipts to clear record household energy debts rather than offering the industry further tax breaks. UK energy firms are currently subject to the Energy Profits Levy introduced in 2022, though this tax exclusively applies to profits generated from domestic oil and gas extraction.
