Economy

BP triples income to 14-year excessive of £8.5bn – enterprise stay | Enterprise

BP has reported ‘eye-watering profits’ at a time when the public are very worried about their energy bills jumping in the autumn, says Rachel Reeves MP, Labour’s Shadow Chancellor.

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n

“People are worried sick about energy prices rising again in the autumn, but yet again we see eye-watering profits for oil and gas producers.

n

“Labour argued for months for a windfall tax on these companies to help bring bills down, but when the Tories finally u-turned they decided to hand billions of pounds back to producers in tax breaks. That is totally wrong.

n

“It’s clear people need greater protection from rising bills. That’s why Labour would use this money now to help people get through the winter.

n

“But we can’t carry on like this. Labour would bring down energy bills for good with a green energy sprint for home-grown power, and a 10-year warm homes plan to cut bills for 19 million cold, draughty homes.”

n

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BP is lifting its payout to shareholders by 10%, as investors reap the rewards from its jump in profits.

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The company will pay a dividend of just over 6 cents per share, up from 5.46 cents per share in the first quarter of the year.

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BP has tripled its underlying profits in the last quarter, as it benefitted from soaring energy price.

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The energy giant has reported underlying replacement cost profit of $8.45bn (£7bn) in April-June, up from $2.8bn in the second quarter of 2021.

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That’s also even higher than the underlying replacement cost profit of $6.2bn it made in Q1, which was the highest for 10 years.

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Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.

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BP’s chief executive Bernard Looney famously, or notoriously, described his company as a ‘cash machine’ last November. And today, we discover how much profits BP made in the last quarter as the Ukraine war drove up energy costs.

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BP could report its highest profit in more than a decade, reigniting controversy over energy companies making money during an energy crisis.

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The industry has benefited from soaring oil and gas prices that have left millions of UK households struggling to pay their bills, which are set to soar over £3,000 per year this winter.

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Analysts predict BP’s underlying earnings could hit $6.8bn for the three months to June, more than double the $2.8bn of a year earlier. We’ll find out when BP’s results are released at 7am.

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That’s even higher than the $6.2bn ‘underlying replacement cost profit’ BP made in the first quarter of the year, due to high operating-cash generation, strong oil-and-gas trading and a significant improvement in refining margins.

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BP’s fellow oil supermajors have already reported eye-watering earnings for the last quarter, with Shell making adjusted profits of $11.5bn…and Exxon reporting an unprecedented $17.85bn.

“,”elementId”:”987a5b34-4ad2-4a91-990d-793843f34a9f”},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”url”:”https://www.theguardian.com/business/2022/jul/28/shell-posts-10bn-quarterly-profits-as-households-struggle-with-bills”,”text”:”Shell and Centrica post profits totalling £11bn as households struggle with bills”,”prefix”:”Related: “,”role”:”inline”,”elementId”:”cfac889d-b770-410d-a613-8f0ef6fdfa9b”},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”url”:”https://www.theguardian.com/business/2022/jul/29/oil-gas-company-profits-fuel-prices-shell-exxon-chevron”,”text”:”Oil company profits boom as Americans reel from high fuel prices”,”prefix”:”Related: “,”role”:”inline”,”elementId”:”9a3efd1e-eb98-4ef4-85a0-b1aa801e400e”},{“_type”:”model.dotcomrendering.pageElements.SubheadingBlockElement”,”html”:”

Also coming up today

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High street bakery Greggs, drinks group AG Barr, pizza delivery firm Domino’s building materials supplier Taylor Wimpey are also reporting results, while building society Nationwide is releasing its latest house price data.

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British Airways has reportedly suspended the sale of short-haul flights from Heathrow for at least a week, adding to the problems facing holidaymakers this summer.

“,”elementId”:”35118d48-3520-4a62-ba6e-49b0565d37eb”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Thousands of seats being removed from sale, as BA complies with Heathrow’s cap of 100,000 passengers per day. It will push already high prices up further across the industry, points out The Times.

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Stock markets are somewhat jittery this morning, as traders brace for US House Speaker Nancy Pelosi’s expected arrival in Taipei this week, as tensions between Washington and Beijing rise.

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Brent crude has dropped below $100 per barrel overnight, as recession fears also rise after weak factory growth figures yesterday.

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The agenda

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    n

  • 7am BST: BP Q2 results released
  • n

  • 7am BST: Greggs, AG Barr, Travis Perkins and Domino’s also report results
  • n

  • 7am BST: Nationwide house price index for July
  • n

  • 3pm BST: US JOLTS survey of job openings in June
  • n

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Vital occasions

BP has reported ‘eye-watering profits’ at a time when the public are very worried about their energy bills jumping in the autumn, says Rachel Reeves MP, Labour’s Shadow Chancellor.

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n

“People are worried sick about energy prices rising again in the autumn, but yet again we see eye-watering profits for oil and gas producers.

n

“Labour argued for months for a windfall tax on these companies to help bring bills down, but when the Tories finally u-turned they decided to hand billions of pounds back to producers in tax breaks. That is totally wrong.

n

“It’s clear people need greater protection from rising bills. That’s why Labour would use this money now to help people get through the winter.

n

“But we can’t carry on like this. Labour would bring down energy bills for good with a green energy sprint for home-grown power, and a 10-year warm homes plan to cut bills for 19 million cold, draughty homes.”

n

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BP is lifting its payout to shareholders by 10%, as investors reap the rewards from its jump in profits.

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The company will pay a dividend of just over 6 cents per share, up from 5.46 cents per share in the first quarter of the year.

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BP has tripled its underlying profits in the last quarter, as it benefitted from soaring energy price.

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The energy giant has reported underlying replacement cost profit of $8.45bn (£7bn) in April-June, up from $2.8bn in the second quarter of 2021.

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That’s also even higher than the underlying replacement cost profit of $6.2bn it made in Q1, which was the highest for 10 years.

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Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.

“,”elementId”:”c0db196d-d500-449d-9945-54b96f7943bc”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

BP’s chief executive Bernard Looney famously, or notoriously, described his company as a ‘cash machine’ last November. And today, we discover how much profits BP made in the last quarter as the Ukraine war drove up energy costs.

“,”elementId”:”66a91d89-8e64-422d-8ebb-eb0a93afffa7″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

BP could report its highest profit in more than a decade, reigniting controversy over energy companies making money during an energy crisis.

“,”elementId”:”f61f77dc-b57c-4b08-bda4-16693fb6fdb9″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The industry has benefited from soaring oil and gas prices that have left millions of UK households struggling to pay their bills, which are set to soar over £3,000 per year this winter.

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Analysts predict BP’s underlying earnings could hit $6.8bn for the three months to June, more than double the $2.8bn of a year earlier. We’ll find out when BP’s results are released at 7am.

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That’s even higher than the $6.2bn ‘underlying replacement cost profit’ BP made in the first quarter of the year, due to high operating-cash generation, strong oil-and-gas trading and a significant improvement in refining margins.

“,”elementId”:”0a6084d7-0f5e-40b5-9ef1-0a6a43fd7929″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

BP’s fellow oil supermajors have already reported eye-watering earnings for the last quarter, with Shell making adjusted profits of $11.5bn…and Exxon reporting an unprecedented $17.85bn.

“,”elementId”:”987a5b34-4ad2-4a91-990d-793843f34a9f”},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”url”:”https://www.theguardian.com/business/2022/jul/28/shell-posts-10bn-quarterly-profits-as-households-struggle-with-bills”,”text”:”Shell and Centrica post profits totalling £11bn as households struggle with bills”,”prefix”:”Related: “,”role”:”inline”,”elementId”:”cfac889d-b770-410d-a613-8f0ef6fdfa9b”},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”url”:”https://www.theguardian.com/business/2022/jul/29/oil-gas-company-profits-fuel-prices-shell-exxon-chevron”,”text”:”Oil company profits boom as Americans reel from high fuel prices”,”prefix”:”Related: “,”role”:”inline”,”elementId”:”9a3efd1e-eb98-4ef4-85a0-b1aa801e400e”},{“_type”:”model.dotcomrendering.pageElements.SubheadingBlockElement”,”html”:”

Also coming up today

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High street bakery Greggs, drinks group AG Barr, pizza delivery firm Domino’s building materials supplier Taylor Wimpey are also reporting results, while building society Nationwide is releasing its latest house price data.

“,”elementId”:”30f03723-b0bf-4438-9d7c-17ccf232dfbb”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

British Airways has reportedly suspended the sale of short-haul flights from Heathrow for at least a week, adding to the problems facing holidaymakers this summer.

“,”elementId”:”35118d48-3520-4a62-ba6e-49b0565d37eb”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Thousands of seats being removed from sale, as BA complies with Heathrow’s cap of 100,000 passengers per day. It will push already high prices up further across the industry, points out The Times.

“,”elementId”:”36b39ea1-14c2-486a-b2ac-4f1c3ce6146e”},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”url”:”https://www.theguardian.com/business/2022/aug/02/british-airways-suspends-heathrow-short-haul-ticket-sales-report”,”text”:”British Airways suspends Heathrow short-haul ticket sales – report”,”prefix”:”Related: “,”role”:”inline”,”elementId”:”3277a1d7-aa22-46bf-9b10-8087c6eca02c”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Stock markets are somewhat jittery this morning, as traders brace for US House Speaker Nancy Pelosi’s expected arrival in Taipei this week, as tensions between Washington and Beijing rise.

“,”elementId”:”0e9d6e61-21f0-4891-88b7-4b76ae365889″},{“_type”:”model.dotcomrendering.pageElements.RichLinkBlockElement”,”url”:”https://www.theguardian.com/world/2022/aug/01/china-military-nancy-pelosi-visit-taiwan”,”text”:”US says Beijing has no reason to turn Pelosi’s expected Taiwan visit into a ‘crisis’ “,”prefix”:”Related: “,”role”:”inline”,”elementId”:”2dbfe1e6-f908-4b7e-8dad-5d7afc9f3ccd”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Brent crude has dropped below $100 per barrel overnight, as recession fears also rise after weak factory growth figures yesterday.

“,”elementId”:”168480a5-ac3b-4878-a526-8668744a0535″},{“_type”:”model.dotcomrendering.pageElements.SubheadingBlockElement”,”html”:”

The agenda

“,”elementId”:”fdfd8edb-20d3-4804-86c8-118f9db1f144″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    n

  • 7am BST: BP Q2 results released
  • n

  • 7am BST: Greggs, AG Barr, Travis Perkins and Domino’s also report results
  • n

  • 7am BST: Nationwide house price index for July
  • n

  • 3pm BST: US JOLTS survey of job openings in June
  • n

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Filter BETA

Mission: To extend income for oil and fuel producers

BP reported an ‘eye-watering consequence’ at a time when the general public is most involved about their electrical energy payments leaping within the autumn, he says. Rachel Reeves MP, Shadow Chancellor of Labour.

“Persons are nervous in regards to the rise in electrical energy costs throughout the ash season, however we additionally see a variety of revenue for oil and fuel producers.

“Labour have fought for months for these firms to be taxed to assist hold payments down, however when the Tories modified they determined to provide billions of kilos again to taxpayers. That is not truthful in any respect.

“It’s clear that folks want better safety towards rising prices. That’s the reason Labor would use this cash now to assist individuals by means of the winter.

“However we can not proceed like this. The operation would scale back electrical energy payments for good and the pace of inexperienced vitality for vitality from the house, and the nice and cozy homes of the last decade plan to cut back the payments of chilly, waterless houses with 19 million.”

At the moment’s outcomes present that bp continues to “proceed to evolve”, CEO Bernard Looney says:

Our individuals continued to work arduous all through the quarter serving to to resolve the vitality trilemma – protected, reasonably priced and low carbon vitality.

We do that by offering the oil and fuel that the world wants in the present day – on the similar time, investing to speed up the vitality transition.

That is BP’s highest revenue in 14 years, Reuters he factors out — simply as households face the monetary ache of winter.

As households face one other rise in vitality payments this winter #BP broadcasts quarterly income of $8.45 billion – 2nd highest revenue in its historical past – 3 instances as a lot as final 12 months. We focus on #WorldBusinessReport 0745 @BBCWorld https://t.co/IYZAvvbL8Y

— Sally Bundock (@SallyBundockBBC) August 2, 2022

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BP can even make a revenue for shareholders by means of a brand new share buyback plan.

The corporate has introduced it’s going to do a $3.5bn share buyback — a option to return money to shareholders.

BP is ready to do that as a result of it posted a internet revenue of $666,000 within the final quarter, saying:

bp has now introduced the acquisition of shares from 2021 and the primary half of 2022 elevated money movement equal to 60% of the rise in residual revenue.

BP additionally spent $2.3bn in inventory buybacks prior to now three months.

BP’s revenue rose to $8.5bn on account of improved pipelines, continued “uncommon” oil commerce and excessive vitality costs.

BP will increase dividend

BP is elevating its payout to shareholders by 10 per cent, as farmers reap the rewards from its soar in income.

The corporate can pay a dividend of greater than 6 cents per share, up from 5.46 cents per share within the first quarter of the 12 months.

The $8.5bn revenue that BP made within the final quarter was considerably increased than analyst estimates (of $688).

Up to now this 12 months, BP has made a revenue to exchange the price of $14.7bn — about 3 times that $5.4bn within the first half of 2021.

BP income tripled to $8.5bn

BP tripled its revenue within the final quarter, because it benefited from rising vitality costs.

The electronics big reported a substitute price of $8.45bn (£7bn) in April-June, from $2.8bn within the second quarter of 2021.

That is additionally increased than the decrease substitute price revenue of $6.2bn it made in Q1, which was the very best for 10 years.

Laura At the momentan fairness analyst at Hargreaves Lansdownepredicts (through Every day Mail):

‘BP will proceed to reap the rewards of upper oil costs within the second quarter with a wholesome revenue anticipated.

‘BP has promised to extend the dividend of $2.5billion (£2.1billion) within the second quarter, to return a part of the excess to traders, though no dividend return is assured.’

Introduction: BP posting excessive income

Good morning, and welcome to our spherical of protection of enterprise, economics and monetary markets.

BP’s CEO Bernard Looney famously, or quite famously, described his firm as a ‘cash machine’ final November. And in the present day, we see how a lot revenue BP made within the final quarter because the battle in Ukraine raised the worth of vitality.

BP may report its highest revenue in additional than a decade, reigniting the controversy over vitality firms cashing in throughout the vitality disaster.

The trade has benefited from rising oil and fuel costs which have left thousands and thousands of UK households struggling to pay their payments, that are anticipated to rise by greater than £3,000 a 12 months this winter.

Analysts estimate BP’s income may attain $6.8bn within the three months to June, greater than double final 12 months’s $2.8bn. We’ll know when the BP outcomes are launched at 7am.

That is even increased than the $6.2bn ‘low substitute price revenue’ BP made within the first quarter of the 12 months, due to increased capital expenditure, stronger oil-and-gas gross sales and important enhancements in refining margins.

BP’s different oil supermajors have already reported eye-watering earnings for the final quarter, with Shell to make an adjusted revenue of 11.5bn … and Exxon reporting an unprecedented $17.85bn.

I’ll come in the present day

Excessive avenue bakery Greggs, drinks group Above, Pizza supply agency Domino’s provider of constructing supplies Taylor Wimpey they’re additionally reporting the outcomes, whereas constructing the group Everywhere in the world is releasing the newest home worth knowledge.

British Airways has reportedly halted the sale of short-haul flights from Heathrow for nearly per week, including to the issues dealing with holidaymakers this summer time.

Hundreds of seats are being withdrawn from sale, as BA follows Heathrow’s capability of 100,000 a day. It’ll push costs which can be already excessive for the trade, he says The Occasions.

Inventory markets have been in a frenzy this morning, as merchants awaited US Home Speaker Nancy Pelosi’s anticipated arrival in Taipei this week, as tensions between Washington and Beijing escalate.

Brent crude fell beneath $100 a barrel in a single day, as fears of an financial slowdown additionally rose after a lackluster manufacturing facility output report yesterday.

The agenda

  • 7am BST: BP Q2 outcomes
  • 7am BST: Greggs, AG Barr, Travis Perkins and Domino’s additionally report outcomes.
  • 7am BST: Nationwide home worth index for July
  • 3pm BST: US JOLTS survey of job openings in June

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