BP slammed over ‘astronomical’ profits amid oil price spike caused by Iran war

BP has come under fire after revealing profits more than doubled in the first three months of the year thanks to the soaring cost of crude caused by the Iran war.

The FTSE 100 firm revealed its preferred profit measure – underlying replacement cost profit – surged by over 130% to a better-than-expected 3.2 billion US dollars (£2.4 billion) in the first quarter, up from 1.38 billion US dollars (£1.02 billion) a year earlier and 1.54 billion US dollars (£1.13 billion) in the previous three months.

Most analysts had expected first quarter profits of 2.67 billion dollars (£1.97 billion).

Campaigners accused the group of profiting at the expense of households, who have seen fuel prices rocket at the pumps and are set to see energy bills jump higher when the price cap is next updated on July 1.

Mike Childs – head of science, policy and research at Friends of the Earth – said: “Just as we saw in 2022 following Russia’s invasion of Ukraine, fossil fuel giants are quids in when global instability drastically inflates fuel prices.

“But again, it’s ordinary people who pay the price when soaring energy prices threaten to plunge the UK into an even deeper cost of living crisis.”

The End Fuel Poverty Coalition called for a windfall tax on firms profiting from the Iran-related energy crisis.

The campaign group’s co-ordinator Simon Francis said: “These astronomical profits are a startling reminder that when conflict drives up the price of oil and gas, energy companies profit and households pay.”

BP’s new chief executive Meg O’Neill, who took over at the helm on April 1, said the group was ensuring fuel supplies are met across the UK.

She said: “The teams across BP are playing their part to keep oil, gas and refined products flowing during an incredibly challenging time – focused on maintaining safe, reliable and cost-efficient operations.”

She added: “We are working with customers and governments to get fuel where it’s needed, helping minimise disruption and the impact it can have on people’s lives.”

Oil prices have raced higher since the US-Israel war on Iran started on February 28 and are now more than 60% up so far this year.

Brent crude reached close to 120 dollars a barrel at one stage and, despite falling back, is still above the 100 dollars level as peace talks falter and amid fears over a looming global energy supply crisis.

BP’s update showed its customers and products division – including its oil trading unit – reported profits of 2.5 billion (£1.84 billion), compared with 1.4 billion dollars (£1.03 billion) in the previous quarter and just 103 million dollars (£76.2 million) a year ago as traders were able to capitalise on highly volatile oil prices.

The group’s shares rose another 3% in Tuesday morning trading, with the stock now having climbed more than a third higher in the past six months amid a boost from the crude rally.

Maja Darlington, climate campaigner for Greenpeace UK, said: “The oil industry’s capacity to profiteer from human misery is almost limitless.”

She added: “Britain subsidises this industry to the tune of several billion a year, and yet they’ll still claim to be over-taxed.

“Today’s numbers make a convincing case that the opposite is true.”