BP reports £6.9bn profit for Q2 after oil and gas prices soar

BP has reported its highest quarterly profit for 14 years, prompting calls for a tougher windfall tax on exceptional profits in the oil and gas sector.

The UK-based oil and gas giant said that its underlying replacement cost profit for the second quarter of 2022 was £6.9bn. This was more than triple the amount it made in the same period last year, and the strongest since 2008.

BP also said that it was increasing its dividend by 10% to 6.006 cents per share.

It comes days after huge profits were reported by rival Shell and British Gas owner Centrica, as well as US oil companies ExxonMobil and Chevron.

Oil and gas prices have soared after Russia invaded Ukraine and threatened to cut off gas supplies to Europe.

Typical household energy bills in the UK are forecast to hit more than £3,600 a year this winter.

Speaking to the BBC’s Today programme, Dale Vince, founder of energy supplier Ecotricity, said that BP was “holding a shedload of money that is coming from hard-pressed bill-payers in our country”, adding he believed it was time to increase taxation on the profits of oil and gas companies.

“Clearly there are exceptional windfall profits in the oil and gas sector, and clearly there’s a problem in the energy market, and we should fix one with the other.”

Doug Parr, chief scientist for Greenpeace UK, also called for a “proper windfall tax” on the huge profits made by oil and gas firms.

“This could unlock billions of pounds to alleviate household bills and fund a nationwide roll-out of home insulation which would keep bills low for good and get our UK fossil gas use under control,” he said.