BP (BP) has reported another sharp rise in profits as disruption in the Middle East pushed oil and gas prices higher, with the energy giant recording quarterly earnings of $5.7bn (£4.2bn), compared with $2.3bn (£1.7bn) a year earlier and ahead of analyst expectations of $5bn.
The results cover the full three months of conflict involving Iran, extending the benefit BP previously saw when only one month of disruption was included in its figures. The company had already reported underlying profits above $3.2bn (£2.4bn) in the previous quarter as crude oil prices jumped following supply concerns around the Strait of Hormuz.
BP chief executive Meg O’Neill described the period as one of the most disrupted times in global energy markets, as attacks in the region affected a key shipping route that normally carries around a fifth of global oil and liquefied natural gas supplies.
The company has also benefited from a renewed focus on oil and gas production, alongside plans to sell assets, including its North Sea operations announced on Friday. The move marks a continued shift away from previous climate targets towards increasing fossil fuel output.
BP’s strong financial performance comes as pressure grows over the environmental impact of higher fossil fuel production, with England recording its driest July on record and around half the country facing drought conditions.
Greenpeace political campaigner Angharad Hopkinson criticised the results, arguing that BP’s profits highlighted a gap between corporate gains and public concerns over rising climate pressures.
Despite the significant increase in earnings, BP’s shares initially rose less than 1% following the announcement, but the stock later reversed those gains to close 1.6% lower as investors continued to assess the company’s long-term strategy and future energy transition plans.
BP Share Price
Share price at the time of writing: 542.90p
Share price performance over the last 12 months: +33.7%
Share price performance year to date: +23.9%
