Decade-high BP profit take boosts London’s FTSE 100

BP is expected to announce slowing profits and revenues for the first quarter of 2024, as it wrestles with lower oil prices and weaker refining margins than this time last year.

The best underlying profit take from one of the UK’s biggest oil giants in a decade sent London’s top index higher today.

The capital’s FTSE 100 index climbed 0.22 per cent to close at 7,561.33 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dipped 0.91 per cent to 20,520.76 points.

BP registered its best quarterly performance in 10 years, it announced this today, posting underlying profits of $6.2bn (£4.9bn), driven by Russia’s invasion of Ukraine lighting a rocket under energy prices.

The oil mega cap attributed to strong underlying earnings to higher oil and gas prices and unprecedented energy trading activity.

But, on an overall basis, the oil mega cap plunged into the red due to booking heavy losses on ditching its stake in Russian energy firm Rosneft.

Its shares topped the FTSE 100 on the news, finishing 5.8 per cent higher.

Traders shrugged off renewed calls from the Liberal Democrats and Labour parties for the government to impose a windfall tax on oil companies’ excess profits to raise money to tackle the cost of living grip squeezing households across the UK.

Chancellor Rishi Sunak has hinted the Treasury could impose a levy on the sector if they fail to ramp up investment in strengthening the UK’s energy infrastructure.

Mining stocks led the day’s losses on the FTSE 100 on concerns the commodities price boom may finally be running out of steam.

Glencore and Antofagasta fell 2.77 per cent and 1.84 per cent respectively.