Middle East tension boosts oil: BP's second-quarter profit more than doubles

British energy company BP more than doubled its profit in the second quarter, driven by the volatility created in oil and gas markets by the conflict in the Middle East.

According to the balance sheet released by the company, BP's net profit after tax rose to 3.91 billion dollars in the April-June period, up from 1.62 billion dollars in the same quarter last year. Revenues also increased by 47 percent on an annual basis, reaching 70 billion dollars.

BP reported that its underlying profitability indicator, which excludes certain items, also increased more than twofold in the quarter to 5.7 billion dollars, exceeding market expectations.

Meg O'Neill, who has served as BP's Chief Executive Officer since April, said the latest reporting period was marked by "one of the most disrupted periods for the global energy market."

While sharp price movements occurred in oil and gas futures under the shadow of Middle East tensions and the US-Iran conflict, major energy companies generated higher revenues from their trading activities. In addition to BP, five major Western energy groups, including Chevron, ExxonMobil, Shell, and TotalEnergies, reported a combined net profit of approximately 47 billion dollars in the second quarter.

ASSET SALES AND NEW STRATEGY

BP, whose performance has lagged behind its competitors in recent years, had reduced its clean energy investments as part of a strategy to focus on more profitable oil and gas operations. As part of this shift, the company plans to divest some of its assets.

"We have made good progress in strengthening BP's balance sheet," O'Neill said. She noted that the company has sold its Gelsenkirchen refinery in Germany in recent weeks, reached an agreement to sell its retail business in Austria, and announced its intention to sell its North Sea operations in the United Kingdom.

BP also announced its intention to sell its US-based biogas company, Archaea. The company had previously stated that it does not view its North Sea operations as part of its future growth plans.

In the earnings statement, O'Neill remarked, "We are not reaching our full potential." The American executive added, "Our performance over the last few years has not met our own expectations, let alone those of our shareholders."

BP increased its quarterly dividend by 4 percent, while company shares rose 0.5 percent in early trading in London following the profit announcement.

O'Neill previously headed the Australian company Woodside Energy after working at ExxonMobil for 23 years. Taking office following the resignation of Murray Auchincloss, O'Neill became the first CEO appointed from outside the company in BP's 117-year history.