BP’s profits falling by more than two-thirds after spike from invasion of Ukraine

BP’S profits fell by more than two-thirds to £2billion over the last three months.

The oil giant blamed the 70 per cent drop on planned maintenance work and lower margins in its refining business.

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A year ago it made £6.6billion in three months as fuel prices surged following the invasion of Ukraine.

Victoria Scholar, head of investment at Interactive Investor, said: “BP’s results echo those of its rivals like Shell, suffering from lower profits amid tough year-on-year comparables.

“Since the highs in June 2022, global oil prices have been struggling.

“This has weighed on BP’s refining margins and trading income.”

Oil and gas prices tumbled to an average $76.60 (£60.10) a barrel in the last three months, compared to the $112 (£87.90) a barrel they reached in the second quarter of last year.

BP boss Bernard Looney said the company is now focused on keeping energy flowing and has increased capacity by starting two new oil and gas projects in the Gulf of Mexico and in India.

He said: “We’re accelerating our transformation.”

The company pleased the market by raising its dividend and promising to buy back shares.

Laith Khalaf, head of investment analysis at AJ Bell, said: “BP claimed it would spend up to $1.5billion (£1.3billion) on share buybacks up to the end of October.

“That announcement, together with news of a 10 per cent dividend hike, was enough to please investors and shift the attention away from a big fall in second quarter profits.”

Looney said the dividend hike reflected the company’s confidence in its strategy.

Stout growth

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GUINNESS has had the best year in its 264-year-history, reckons owner Diageo.

The Irish stout enjoyed by the Princess of Wales on St Patrick’s Day has soared in popularity as more women and younger adults indulge.

Diageo’s profits for the year climbed 7 per cent to £4.7billion, with the swell boosted by drinkers opting for more expensive brands.

The group is backing its continued success by starting to build a new brewery in London’s Covent Garden, which it hopes will attract half a million visitors a year.

“Arthur Guinness would be very pleased to see how his drink is performing now,” UK boss Nuno Teles told The Sun.

Travis Perkins has ‘resilience’

TRAVIS PERKINS says trading has been tough this year as demand for new builds and renovation remainsweak, but boss Nick Roberts is upbeat.

He told The Sun that the builders’ merchant is resilient enough to cope until an upturn because of its divergent services.

He said: “We have a robust balance sheet and cash position and are clear about how we navigate the short term.”

Profits fell 31 per cent to £112million in the six months to the end of June.

But despite the fall in revenue, Roberts said the company’s 550-branch Toolstation business has grown its market share.

Making dough

PIZZA chain Domino’s is targeting the lunch market with new £3.99 mini pizzas, wraps and milkshakes.

Outgoing boss Elias Diaz Sese told The Sun the business is “developing new offers and new stores” after revenue rose 20 per cent in the last six months. UK profits are set to be higher than expected this year, at up to £138million.

The firm is opening another 29 branches in 2023 and launching new pizzas, after the unexpected success of its Ultimate Chicken Mexicana, which sold more than 667,000.

Greggs grows

GREGGS plans to expand by opening more outlets in supermarkets and airports.

Sales jumped 22 per cent to £844million in the last six months, boosted by higher demand from customers, price increases and store openings.

The bakery chain has increased its number of UK stores by 50 to 2,378.

Boss Roisin Currie said: “We have targeted travel locations and opened in Glasgow, Cardiff and Gatwick airports.”

The company has also opened outlets in TESCO and SAINSBURY’S stores.

Scolding on rates for HSBC

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BANKING giant HSBC has come under fire after revealing profits more than doubled in the last six months — thanks to rising interest rates.

Profits soared to £16.9billion, up from £6.6billion a year ago, as the bank cashed in on UK mortgage rates.

And revenue soared by 51 per cent to £28.8billion in the six months, boosted by higher interest rates.

Mortgages rates have soared while savings rates have grown slowly, particularly for easy access accounts.

The news prompted the City watchdog on Monday to give the banks four weeks’ notice to stop ripping off customers or face “robust action”.

Chair of the Treasury Committee Harriett Baldwin said it was “further evidence high street banks are making hay out of high interest rates while offering little to loyal savers”.

HSBC boss Noel Quinn said the bank was “cognisant of the pressure people are facing”.

Metro in £15m joy

HIGH street bank Metro has turned a £10.5million half-year loss in 2022 into a £15.4million profit for the six months to the end of June.

It benefited from rising interest rates but was also boosted by a turnaround plan.

The bank has 76 branches and plans to open a further 11.

 Boss Daniel Frumkin said: “While competitors continue to shrink their branch numbers, we are continuing to see the benefits of being rooted in the communities we serve.”