BP’s $5. 7bn windfall sparks backlash as new boss launches radical reset - London Business News | Londonlovesbusiness. com
BP has reignited the debate over energy profits after reporting its strongest quarterly earnings in four years, with the oil giant benefiting from market turmoil during the Middle East conflict even as. . .
BP has reignited the debate over energy profits after reporting its strongest quarterly earnings in four years, with the oil giant benefiting from market turmoil during the Middle East conflict even as critics accused it of profiting from global instability. The FTSE 100 group said its preferred measure of profitability — underlying replacement cost profit — jumped 78 per cent to $5. 7 billion (£4. 2 billion) in the second quarter of 2026, sharply exceeding analyst expectations. The surge was driven largely by stronger refining margins and trading gains as energy markets were shaken by the Iran war. The results place BP alongside rivals including Shell and ExxonMobil, which have also reported improved earnings following thesharp volatilityin oil and gas markets. But the windfall has intensified scrutiny from campaigners, who argue energycompanies are benefitingfrom crises that have pushed up household costs. Friends of the Earth accused BP of profiting from a worsening climate emergency, while the EndFuel PovertyCoalition said millions of households continued to face financial pressure despite record returns for major energy producers. At the same time, BP’s new chief executive Meg O’Neill is moving aggressively to reshape the company, signalling aretreat from parts of its previous renewable energy strategy. The company confirmed plans to sell its US renewable natural gasbusinessArchaea as part of a wider effort to dispose of non-core assets and improve returns. The overhaul follows a period of shareholder frustration over BP’s performance, withinvestors demandingstronger discipline and higher profitability. Last week, the company announced it was seeking a buyer for its UKNorth Seaoperations after six decades of production. Ms O’Neill said BP had failed to deliver consistently for shareholders and neededurgent actionto rebuild confidence. “We are not making the most of our potential,” she said, warning that thecompany’s costs, liabilities and previous investments had not been resilient enough in a lower-price environment. The challenge now facing BP isbalancing investor demands for higher returns with growing politicalpressure over climate commitments — a tension likely to define the next phase of its transformation. Leave a Comment