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.
Chief executive Meg O’Neill praised the quarter as sending the firm “in the right direction” and “strengthening the balance sheet” – but critics have labelled the energy giant’s revenues as “horrifying” as “millions suffer the fallout” from war.
The FTSE 100 firm revealed its preferred profit measure – underlying replacement cost profit – surged by over 130 per cent to a better-than-expected $3.2bn (£2.4bn) in the first quarter, up from $1.38bn (£1.02bn) a year earlier and $1.54bn (£1.13bn) in the previous three months. Most analysts had expected first-quarter profits of $2.67bn (£1.97bn).
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 once more when the price cap is next updated on 1 July.
The price of oil has risen from the mid-$60s range in February to over $100 now, spiking close to $120 several times during the course of the Iran war.
Most analysts had expected first-quarter profits of $2.67bn (£1.97bn) (PA)
Patrick Galey, head of news investigations at campaigning organisation Global Witness, said: “It is horrifying to see BP’s profits grow as millions suffer the fallout from the US-Israel war on Iran. Unfortunately we’ve been here before – when Russia invaded Ukraine four years ago we saw big oil firms make bumper profits from spiralling fuel costs.
“As oil prices drive up bills once again, it’s clear that fossil fuel companies don’t enhance affordability or energy security, they make life worse. They destroy the climate, push up the cost of living, and rake in billions in profit while innocent civilians die.
“It’s well overdue that we make oil companies pay for the damage they’re doing. If they broke it, they need to fix it. It’s clear they can afford to. BP profits, we all pay.”
Mike Childs, head of science, policy and research at Friends of the Earth, added: “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 blockade of the Strait of Hormuz has seen the cost of oil soar (Reuters)
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.”