Cost of Living Crisis: BP reports large profits as UK energy bills set to soar from October

BP has reported huge profits for the first three months to June.

They have benefitted from the rises in the wholesale prices of crude oil and gas.

Underlying profits for the energy giants reached £6.9bn ($8.45bn), which is triple the amount the company made last year.

It is the second largest figure in the firm’s history – with its half year profits reaching $14.6bn.

This has proved to be a major benefit to shareholders, due to a 10 per cent rise in the dividend pay out.

BP chief executive Bernard Looney said: ‘Today’s results show that BP continues to perform while transforming.

‘Our people have continued to work hard throughout the quarter helping to solve the energy trilemma – secure, affordable and lower carbon energy.’

The figures come after households are struggling to meet rocketing bills, with anger mounting over massive profits from oil and energy firms following bumper results from Shell and British Gas owner Centrica last week.

SEE ALSO: Why have EDF energy prices soared in UK, but not France

BP also warned that there is not expected to be any let up with energy prices over the summer, forecasting that crude oil and gas prices will remain high over the third quarter due to supply disruption from Russia.

Households across Britain have been warned they could face an annual energy bill of £3,615 this winter in the latest grim analysis by energy consultant Cornwall Insight.

Joshua Warner, market analyst at City Index, said it was a ‘recipe that should continue to deliver bumper earnings for BP and other oil and gas giants’.

The Government is introducing a windfall tax on the profits of energy companies, but it has faced criticism for giving strong incentives to allow companies to invest in oil and gas, while there are no tax incentives in the policy for green investment.