Energy boost

BP profit at 14-year high amid bills warning

petrol prices

BP benefited from rising oil prices (pic: Terry Murden)

BP has reported a second quarter profit of $8.45 billion, its highest in 14 years as it benefited from rising oil and gas prices.

The figure far exceeded analysts’ expectations of $6.8 billion and represented an increase on $6.25bn profit in the first three months of 2022 and $2.8bn a year earlier.

The company increased its dividend by 10% to 6.006 cents per share, more than its previous guidance of a 4% annual increase.

It raised its share buyback programme to $3.5bn for the third quarter from $2.5bn in the previous three months, in line with its policy of using 60% of cashflow for the repurchase of its own shares.

Chief financial officer Murray Auchincloss said in a statement that “BP continues to build a track record of delivery against its disciplined financial frame.”

The figures follow similarly high profit returns for other energy giants including Shell and Centrica and a new forecast from Cornwall Insight whichpredicts the typical domestic energy bills to hit more than £3,615 a year

The average energy bill was £1,400 last October. The last energy price cap increase, in April 2022, saw that rise to £2,000.

The price cap – the maximum amount suppliers can charge customers in England, Scotland and Wales – is expected to go up again in October.

Last month, BFY, a management consultancy, predicted a typical energy bill could hit £3,850 a year by January.

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