Fuel protesters’ anger at £1.3m-an-hour BP profits

Oil giant BP sparked fresh anger among fuel protesters today after clocking profits of £1.3 million an hour and boosting payouts to shareholders.

The UK-based group, which has already given £1.6bn to investors so far this year, is to improve its second-quarter dividend by nearly 5%.

The move comes after BP unveiled record interim figures of £5.58bn with £2.68 billion achieved in the most recent three-month period to June 30.

Garry Russell, organiser of the Dump the Pump campaign, said it was unfair for motorists to face high forecourt prices while BP’s profits rose.

He said: ‘‘It is clear where their priorities lie. I’m not against people making profits, but these types of figures are obscene.

‘‘It’s high time that Gordon Brown looked at where his money came from and that the oil giants had huge windfall taxes.’’

The RAC Foundation, the campaigning arm of the RAC, described the oil firms as being ‘‘beyond fat cats’’.

Spokesman Jonathan Simpson said: ‘‘This will be seen by the majority of motorists in this country as BP operating with excessive greed.’’

The figures from BP come a week after Anglo-Dutch group Shell announced its own bumper set of profits, with half-year figures of £5.2bn.

BP defended the profits and dividend payment today, adding that its UK retail business made a loss in the first half of this year.

A spokeswoman said: ‘‘We are an international company and don’t just sell petrol in the UK. The payment to shareholders reflects how we are operating on an international basis.’’

While BP achieved a record figure for the six months, the group’s return for the second three months fell below the previous quarter for the first time in two years.

The figures from BP were still in line with City expectations, although analysts expressed surprise at the increase in the second quarter dividend.

Bruce Evers, of Investec bank, added: ‘‘These are a solid set of numbers, particularly in these trying times.’’

Lord Browne, BP chief executive, said the group had successfully met its targets for the year so far.

‘‘Our disciplined approach to cost management and investment selection is delivering profitable growth,’’ he said.

Increases in gas production, higher gas prices in North America and a better performance from the group’s refinery and marketing business helped lift BP’s figures.

A week ago, Shell’s shares tumbled after it showed that production levels across the business were under pressure.

BP fared better on the London market today, rising nearly 2%, as it reported that its combined oil and gas production performance had risen 4% in the second quarter and by 9% in the half year.

But its chemicals business created some downward pressure as higher energy prices and weaker demand pulled down half-year profits from $629m (£446m) last time to $90m (£63.4m).

The refining and marketing division, which includes the retail business, saw operating profits rise to $2.7bn (£1.9bn), compared with $1.98bn (£1.4 bn) a year earlier.

The UK arm of the operation achieved a half-year loss of $227m (£159.8m) - against a profit of $181m (£128m) last time.

BP said the improvement in the overall division reflected higher refining margins and the benefits of its acquisition of Burmah Castrol.

Lord Browne added that the oil industry appeared well balanced, although the group would continue to focus on controlling costs.

He added: ‘‘Oil prices have fallen from their peaks, but OPEC production cuts earlier in the year have prevented over supply.’’