Profits of major oil company BP for the second quarter of 2022

BP gas station in Madrid, Spain.

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London – the giant British oil company BP On Tuesday, it posted bumper profits in the second quarter, benefiting from higher commodity prices.

The major British energy company reported a second-quarter base replacement cost profit, used as an indicator of net profit, of $8.5 billion.

Compared to profit $6.2 billion In the first three months of the year and $2.8 billion for the second quarter of 2021. Analysts expected BP to report first-quarter earnings of $6.3 billion, according to Refinitiv.

BP also announced on Tuesday a 10% increase in its quarterly dividend to shareholders, raising it to 6,006 cents per common share.

BP’s shares are up nearly 20% since the start of the year.

BP’s findings once again underscore the stark contrast between the profit bonanzas of the oil majors and those grappling with a deepening cost-of-living crisis.

The world’s largest oil and gas companies have smashed their earnings records in recent months, after soaring commodity prices prompted by Russia’s invasion of Ukraine.

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

Last week, BP’s competitor in the UK coincidence mentioned Second-quarter results recorded $11.5 billion and announced a $6 billion share buyback program, while British Jazz was the owner. Centrica It reinstated the dividend after a massive increase in first-half earnings.

Cost of Living Crisis

Environmental activists and union groups have condemned the rising profits of the oil majors and called on the UK government to impose meaningful measures to reduce the cost of rising energy bills.

Last month, a cross-party group of UK lawmakers called the government To increase the level of support to help families pay their rising energy bills and to outline a national plan to insulate homes.

The cap on tariffs for the most widely used consumer energy is expected to rise more than 60% in October due to higher gas prices, taking the average annual double fuel bill for homes to more than 3,200 pounds ($3,845).

National Action Organization for Charitable Energy to Fight Fuel Poverty warned That if this happened, it would push 8.2 million homes – or one in three British homes – into energy poverty. A lack of fuel or energy indicates that a family cannot afford to heat their home to an adequate temperature.

“It is clear that not everyone experiences an energy crisis,” Sana Youssef, an energy activist at Friends of the Earth, said in response to Shell and Centrica’s findings. “These huge profits will be met with disbelief by the millions of people across the UK who are facing soaring energy prices.”

Yousef has called on the UK government to impose a tougher windfall profit tax on energy companies. “The bulk of these profits should be used to insulate our homes and help cash-strapped families pay for heating this winter, rather than developing more fossil fuel projects that are roasting the planet,” Yusef said.

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

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

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