LONDON — BP mentioned its earnings from April to June practically tripled from a yr in the past, rising stress on governments to intervene as vitality firms gush earnings from the excessive oil and gasoline costs which are fueling inflation and squeezing shoppers.
Net revenue jumped to $9.26 billion within the second quarter from $3.12 billion in the identical interval a yr in the past, BP mentioned. The vitality conglomerate mentioned it expects oil and gasoline costs to stay excessive as a consequence of disruptions in provide brought on by Russia’s invasion of Ukraine.
BP’s earnings come as vitality firms worldwide scoop up document earnings. British rival Shell final week posted an unprecedented $18 billion quarterly revenue. Irving, Texas-based Exxon Mobil reported internet revenue of $17.85 billion, and San Ramon, California-based Chevron earned $11.62 billion.
Nick Butler, a visiting professor at Kings College London and a former BP vp, mentioned the figures are more likely to make BP and different oil firms uncomfortable given the ache excessive vitality costs are inflicting for shoppers.
“I think BP’s very sensitive to the reputational problems of making money at this level,” Butler instructed the BBC. “I think there’s a real case here, which I think people in the companies would be very open to, for the government calling together the industry to find a plan to get us through the winter without putting these very high prices onto ordinary consumers.”
British regulators have elevated the annual vitality worth cap for family gasoline and electrical energy payments by 73%, to 1,971 kilos ($2,408), since Oct. 1. Cornwall Insights, an vitality and utility advisor, estimated that the cap would soar an additional 70%, to three,359 kilos, this fall as regulators attempt to preserve tempo with wholesale costs.
In the United Kingdom, the place inflation reached a 40-year excessive of 9.4% in June, the federal government has introduced a 25% windfall earnings tax on the earnings of oil and gasoline firms that come from British operations.
BP mentioned Tuesday that the windfall earnings tax would enhance the headline tax charge on its North Sea operations to 65% from 40%. The firm mentioned it plans to put aside $800 million to cowl the bump.
Brent crude, a benchmark for worldwide oil costs, averaged $113.83 a barrel within the second quarter, up 65% from a yr earlier, in keeping with BP. Natural gasoline costs greater than doubled over the identical interval, rising as as Moscow decreased or reduce off pure gasoline provides to a dozen European Union international locations.
Environmental teams blasted the corporate.
“While households are being plunged into poverty with knock-on impacts for the whole economy, fossil fuel companies are laughing all the way to the bank,” mentioned Doug Parr, chief scientist for Greenpeace UK.
Source: www.bostonherald.com”