Energy Companies 'Smile' Amid Soaring Oil Prices... BP Reports Largest Quarterly Profit in 14 Years

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] British energy company BP recorded its highest net profit since 2008 in the second quarter of this year (April to June), earning three times the revenue compared to the same period last year due to the surge in oil prices caused by Russia's airstrikes on Ukraine.

According to Bloomberg News and others on the 2nd (local time), BP announced that its adjusted net profit for April to June this year was $8.5 billion (approximately 11.11 trillion KRW). This surpassed the $6.2 billion recorded in the first quarter of this year, which was the highest in over a decade, and was three times the $2.8 billion from the second quarter of last year. It also significantly exceeded the market forecast of $6.8 billion, marking the largest net profit in 14 years since the $8.8 billion net profit in 2008.

BP's performance came amid a sharp rise in energy prices following Russia's airstrikes on Ukraine in the second quarter. Bernard Looney, BP's Chief Executive Officer (CEO), said, "Today's results show that BP continues to operate well amid change," adding, "We are providing the oil and gas that the world needs today while simultaneously investing to accelerate the energy transition."

Along with the earnings announcement, BP decided to increase its dividend by 10% to $0.06 per share. It also stated that it would repurchase $2.5 billion worth of shares between April and July, followed by a $3.5 billion share buyback in the third quarter.

As news of energy companies consecutively posting massive profits spreads, there are criticisms that while the world is struggling with soaring energy prices, these companies are enjoying enormous financial gains.