BP has now made almost $15bn in profits this year
BP has reported huge profits for the second quarter of 2022, as energy bills are predicted to rise by even more for millions across the UK this winter.
The energy company made $8.45bn (£6.95bn) in underlying profits for the second quarter of this year, more than three times the amount it had made this time last year.
The figure is also the second highest in the company’s history, and takes its profits for the first half of the year to almost $15bn.
“BP continues to build a track record of delivery against its disciplined financial frame,” chief financial officer Murray Auchincloss said in a statement.
The BBC reports that BP will be boosting shareholder payouts by 10 percent because of the record profits.
Just announced: BP profits have trebled to 6.95bn for the 3 months April – June. They’d already made record profits of £4.9bn in the first 3 months January-March.
There is no cost of living crisis. We have a cost of greed crisis.
Renationalise energy.
— Claudia Webbe MP (@ClaudiaWebbe) August 2, 2022
The news comes just days after British Gas owner Centrica saw its profits increase five-fold.
The company’s 2022 interim results showed profits in the six months to the end of June were up five-fold to £1.34 billion.
It announced it would be restoring its dividend, with shareholders set to cash in thanks to the bumper profits.
But energy bills for millions of households across the UK are set to soar this winter, worsening the cost of living crisis.
On Tuesday, it was announced that a typical household is now expected to pay more than £3,600 a year in energy bills by the new year.
Consultancy Cornwall Insight said the typical gas and electric bill in England, Wales and Scotland could reach £3,615.
Typical gas and electricity bills could hit £3,615 a year this winter according to figures from consultancy firm Cornwall Insights seen by #BBCBreakfast.
OFGEM will announce the new figure this month.@BenMBoulos got reaction to the forecast https://t.co/NlVVzBRiO5 pic.twitter.com/xRuumaU3EQ— BBC Breakfast (@BBCBreakfast) August 2, 2022
Last October, the average energy bill was £1,400.
The huge profits of energy companies will only increase calls for the government to introduce a windfall tax.
Labour MP and Shadow Chancellor Rachel Reeves described BP’s profits as “eye-watering” and said that her party would bring down energy bills.
She said: “People are worried sick about energy prices rising again in the autumn, but yet again we see eye-watering profits for oil and gas producers.
“Labour argued for months for a windfall tax on these companies to help bring bills down, but when the Tories finally u-turned they decided to hand billions of pounds back to producers in tax breaks. That is totally wrong.
“It’s clear people need greater protection from rising bills. That’s why Labour would use this money now to help people get through the winter.
“But we can’t carry on like this. Labour would bring down energy bills for good with a green energy sprint for home-grown power, and a 10-year warm homes plan to cut bills for 19 million cold, draughty homes.”
https://twitter.com/PoliticsJOE_UK/status/1552991479915741186
Related links:
- Brits using washing-up liquid to shampoo hair as cost of living crisis bites
- Man who is next in line to be King asks Money Saving Expert for advice on paying energy bills
- Martin Lewis warns energy price cap could soar close to £3,000 in October
