BP profits more than double to £4.2billion as Iran conflict drives higher oil prices
BP has reported quarterly profits of $5.7billion (£4.2billion), more than double the $2.3billion (£1.7billion) it made a year earlier, as higher oil prices lifted the energy giant’s performance.
The result beat City expectations of $5billion (£3.7billion).
Chief executive Meg O’Neill described the quarter as “strong”, delivered during “one of the most disrupted periods in the global energy market”.
The figures cover the first full quarter of the conflict involving Iran, after previous results reflected only the first month of hostilities.
Higher fossil fuel prices were the main driver behind the surge in earnings, marking the second consecutive quarter in which BP has posted profits more than double those recorded a year earlier.
The company reported underlying earnings of $3.2billion in the previous period.
Oil prices have risen sharply following disruption around the Strait of Hormuz, one of the world’s most important energy shipping routes.
Attacks since March have restricted traffic through the waterway, which normally carries around one‑fifth of global oil and liquefied natural gas supplies.
While producers have faced supply challenges, higher commodity prices have boosted revenues across the sector.
BP is not alone in reporting stronger earnings. Shell last week announced a 70 per cent increase in half‑year profits, posting $16.75billion (£12.6billion).
BP has also continued reshaping its business by increasing its focus on oil and gas production.
On Friday, the company said it plans to sell its North Sea operations as part of a wider programme of asset disposals.
It has scaled back earlier plans to expand its renewable energy business and is prioritising investment in core fossil‑fuel operations.
BP said the strategy has strengthened its financial position alongside higher global energy prices.
Angharad Hopkinson, political campaigner at Greenpeace, said: “Amassing $5.7billion (£4.2billion) in profits shows how corporate gains have become entirely divorced from the public good — ordinary people are feeling the heat when it should be the polluters paying the price.”
BP’s shares rose by just under one per cent following the publication of the results.