BP posts £2bn profits as cost of living crisis continues
Oil giant BP has posted lower-than-expected profits of £2bn in the last quarter but campaign groups have criticised the firm for its bumper earnings during the energy and cost of living crisis.
BP’s underlying replacement cost profit, the firm’s preferred measure, was 2.59 billion dollars (£2 billion) for the second quarter of 2023, down from 8.45 billion dollar (£6.6 billion) profit over the same period last year.
The FTSE 100 company blamed its declining profits on planned maintenance work and lower margins in its refining business.
It comes a week after rival oil giant Shell also posted lower-than-expected profits of £3.9bn.
Both firms have come under fire for giving back money to shareholders rather than investing in clean energy.
In its latest update, BP said it will hand more cash to investors through higher dividends and a further share buyback despite the weaker performance.
The think tank IPPR said for every £1 BP is spending on low carbon investment, it is giving £9 to shareholders in buybacks.
Pranesh Narayanan, research fellow at IPPR, said: “BP is putting shareholders above society and the climate, stating in their annual accounts that ‘a resilient dividend is BP’s first priority’. Despite profits falling, the company is still making billions off the back of higher oil prices. But instead of investing those profits in the green transition, BP is transferring it straight to their shareholders through share buyback schemes.”
Environmental campaign group Friends of the Earth added: “As BP reports its quarterly profits have fallen, let’s not forget that 2022 was its most profitable year on record, and that it’s still the beneficiary of massive tax breaks from the UK government.
“Meanwhile the drop in wholesale gas and oil prices is yet to make any material difference to the nation’s bills, which are projected to remain high for some time to come. This means millions more are likely to struggle through bitterly cold temperatures in homes they can’t afford to heat when winter rolls around.
“With BP’s earnings for last year more than double 2021’s takings, you’d think it might have significantly increased investment in clean and cheap renewable energy – but earlier this year the oil and gas giant retreated on its climate commitments instead.”
