BP, the energy giant, has reported lower than expected profits despite the recent rise in global oil prices, according to a report by BBC. The company was predicted to make $4 billion between July and September of this year, but instead, they came out with only $3.3 billion.
The article highlights that BP had been making $8.1 billion in 2022 after Russia's invasion of Ukraine, which led to an increase in oil prices and boosted the company's profits. However, even with the recent rise in oil prices, BP is still falling short of predicted profits for this quarter.
The ongoing conflict in Israel is also a factor that could impact oil prices. The World Bank has warned that if the conflict is not resolved soon, oil prices could increase to around $150 a barrel. This could result in higher energy and food prices.
A BBC article explains that BP's former chief executive, Bernard Looney, has recently resigned from leading the oil and gas company. He had led the company since 2020, however, after an investigation into his personal relationships with colleagues, the second investigation in the past two years, he resigned and stepped down from leadership immediately. A former BP executive, Nick Butler, said to BBC, "I think the business is stable despite not having a chief executive at the moment full-time properly, but I think there's a touch of complacency". Even amidst a profit challenge, BP remains steady, electing an interim chief executive, Murray Auchincloss, who remarked that this quarter was solid and he predicted that the company would "grow earnings through this decade, and on track to deliver strong returns for our shareholders".
Furthermore, BP and other oil giants like Shell have been hit with a windfall tax due to the rise in oil and gas prices, which has increased energy bills for households and businesses. This tax, in place until March 2028, requires these oil firms to pay 35% of their UK profits.
Despite these challenges, BP remains stable and is determined to grow earnings in the coming years. The company's interim chief executive is optimistic about the future and believes that BP is on track to deliver strong returns for shareholders.
Overall, BP's struggle to increase profits despite rising oil prices and the impact of external factors highlights the challenges faced by the energy industry.