BP PLC reported a sharp rise in second-quarter profit on Tuesday, joining a wave of energy giants posting robust results as fossil fuel prices climb amid heightened tensions between the United States and Iran.
The oil major disclosed that its underlying replacement cost profit, a key measure of net income, reached $5.7 billion for the quarter, doubling from $2.35 billion in the same period last year. International oil and gas prices have surged significantly as the Middle East conflict continues to escalate, severely disrupting shipping through the strategic Strait of Hormuz. This narrow maritime chokepoint typically handles about one-fifth of the world's oil and gas transportation.
U.S. President Donald Trump on Monday sharply criticized American oil giants Exxon Mobil Corp and Chevron Corp, accusing them of "making a fortune" from fuel price hikes driven by the Iran conflict and reiterating his demand for lower gasoline prices at the pump. "They are making too much money on the supply shortage, and I'm not happy about it," Trump told reporters at the White House.
Exxon Mobil's second-quarter profit more than doubled year-over-year to $14.5 billion, while Chevron's profit surged nearly 400% to $12 billion, up from $2.5 billion a year earlier.
BP Chief Executive Officer Meg O'Neill acknowledged the strain on consumers during an interview on Tuesday. "I understand the pressure families feel when they see prices at the gas station pump. But the reality is that we produce a globally traded commodity, and our product prices closely follow international commodity price movements," she said.
"BP is currently fully focused on the steps we can take to help ease the current market situation. We are working to keep our facilities running steadily, including both our upstream oil extraction assets and our downstream refining assets that process crude oil," O'Neill said. She added that the company has adjusted its refining production plans to maximize supply of fuel products, such as jet fuel and diesel, that consumers need most at different times.