BP Reports a Net Profit of $6.25bn in the 1st Quarter of 2022

BP's profits for the first 3 months of 2022 have more than doubled after oil and gas prices increased amid the war in Ukraine and the cost of living crisis.

The leading British oil and gas company headquartered in London, is one of the world's seven oil and gas supermajors.

It is a vertically integrated company operating in all areas of the oil and gas industry, including exploration and extraction, refining, distribution and marketing, power generation, and trading.

BP reported an underlying profit of $6.2bn compared to $2.6bn in the same period last year - ahead of expectations.

The energy giant said the increase was due in part to exceptional oil and gas trading.

Rising profits have prompted calls for a one-off windfall tax on energy companies to help UK households grappling with rising bills.

This type of charge targets firms that are lucky enough to benefit from something they were not responsible for - in other words, a windfall.

BP's profits have been driven by a sharp rise in oil prices.

The recent positive results are initially led by increased demand as economies reopened following Covid lockdowns.

Last November, BP chief Bernard Looney described the energy market as "a cash machine".

Oil prices rose further after war broke out in Ukraine and western countries imposed sanctions on Russia following its invasion.

Russia is the second biggest exporter of crude oil, and is also the world's largest natural gas exporter.

UK inflation is currently at its highest rate for 30 years, lifted by the rising cost of oil and gas which has inflated fuel prices as well as the cost of household energy.

BP is keen to promote its role in driving energy security as the industry continues to face demands from opposition parties in Westminster for a windfall tax.

Chancellor Rishi Sunak has previously said he would explore a windfall tax policy if companies did not invest enough in the UK's energy supply.

BP recently announced plans to invest £18bn in green and fossil fuel operations in the UK by the end of the decade.The investment would include cash for more wind power and electric car charging points, the company said.