BP profit highest since 2022 as Iran war pushes up oil price

Despite the big rise in profits, BP chief executive Meg O’Neill said the company was not reaching its full potential.

BP, which employs nearly 14,000 people in the UK, confirmed plans to move further away from clean energy, revealing plans to sell off its US renewable natural gas business Archaea.

O’Neill said this was part of her plan to prioritise “value, not sentiment or history”.

“We have to focus on the assets with the strongest potential to deliver competitive returns and long-term value,” she said.

Last week, BP announced it was putting its North Sea business up for sale in a move that would end 60 years of production in the region by the company.

Russ Mould, investment director at AJ Bell, said the sell-offs intended to make the business more streamlined.

“O’Neill will be aware she cannot rely on oil and gas prices remaining this high indefinitely,” he said.

“She needs to make sure it can prosper even when the backdrop is less helpful.”

The bumper profits reported by oil companies have led to an angry response from campaign groups.

Angharad Hopkinson, from environmental group Greenpeace, said BP’s results showed that “corporate gains have become entirely divorced from the public good”.

She said “the one point on which we agree with BP” is its decision to sell off its North Sea operations.

“Prolonging this parasitic relationship by trying to squeeze the last few drops of expensive oil out of the North Sea is sheer folly,” Hopkinson said.

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said oil firms “have banked more billions from a crisis that has created real hardship for millions of households”.

“The lesson is not to hand yet more tax breaks to an industry posting billions in profit every quarter, but to use Windfall Tax receipts to clear the record energy debt households built up during the crisis,” he said.

Energy firms operating in the UK are subject to a windfall tax – called the Energy Profits Levy – that was introduced in 2022.

However, the tax only applies to profits made from extracting oil and gas in the UK.