BP profits rise 28%

†BP has announced a 28% jump in net profits for the second quarter of 2008. The soaring prices of crude oil and natural gas are largely responsible for the boost.

The energy giant’s net income climbed to £4.75bn from £3.7bn for the same period last year. Profits would have been even greater had the company not had to recalculate the value of its UK gas contracts due to changes imposed by new accounting rules, making a difference of £1bn, in the second quarter.

The high profits from BP and other oil producers have led to calls from unions for a windfall tax to help those who are less able to cope with hikes in their energy bills. But BP argues it is already one of the UK’s largest taxpayers, handing over £1.2bn to the Treasury last year.

Earlier this month, BP signed up to be the sixth Tier One sponsor of the London 2012 Olympics. The deal, understood to be worth at least £50m, will make the brand the official oil and gas partner for the Games (MW.co.uk, July 4).