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| Higher oil price boosts BP profit | Higher oil price boosts BP profit |
| (30 minutes later) | |
| Oil giant BP has announced a 6% rise in profits for the second quarter of 2008, largely thanks to a sharp rise in the price of oil. | Oil giant BP has announced a 6% rise in profits for the second quarter of 2008, largely thanks to a sharp rise in the price of oil. |
| Replacement cost profit after tax was $6.85bn (£3.4bn) between April and June, compared with $6.5bn a year ago. | Replacement cost profit after tax was $6.85bn (£3.4bn) between April and June, compared with $6.5bn a year ago. |
| Profits would have been higher without changes imposed by accounting rules. During the quarter, the price of a barrel of oil rose by about 35%. | Profits would have been higher without changes imposed by accounting rules. During the quarter, the price of a barrel of oil rose by about 35%. |
| Unions are calling for a windfall tax on BP and other oil producers. | Unions are calling for a windfall tax on BP and other oil producers. |
| Downstream profits | Downstream profits |
| In the first half of the year, BP said it had made $13.4bn, a rise of 23% on the first half of 2007. | In the first half of the year, BP said it had made $13.4bn, a rise of 23% on the first half of 2007. |
| Profits would have been even higher without the effects of international accounting rules which meant that BP had to recalculate the value of its UK gas contracts. This made a difference of almost $2.1bn in the second quarter. | Profits would have been even higher without the effects of international accounting rules which meant that BP had to recalculate the value of its UK gas contracts. This made a difference of almost $2.1bn in the second quarter. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| BP makes the bulk of its profits in its upstream business - the exploration and production of oil. | BP makes the bulk of its profits in its upstream business - the exploration and production of oil. |
| Thanks to the rising cost of crude oil, its pre-tax profits in that division were 51% higher at $10.8bn in the second quarter, compared with $7.1bn in the same period in 2007. | Thanks to the rising cost of crude oil, its pre-tax profits in that division were 51% higher at $10.8bn in the second quarter, compared with $7.1bn in the same period in 2007. |
| In the downstream business, which includes refining oil and selling it at its 24,000 forecourts worldwide, it made a profit of $539m in the second quarter, a significant fall from the $2.7bn it made in the same period a year earlier. | In the downstream business, which includes refining oil and selling it at its 24,000 forecourts worldwide, it made a profit of $539m in the second quarter, a significant fall from the $2.7bn it made in the same period a year earlier. |
| In the UK, the downstream division made a profit of $118m compared with $937m in the second quarter of 2007. BP said refining margins were lower than a year ago. | In the UK, the downstream division made a profit of $118m compared with $937m in the second quarter of 2007. BP said refining margins were lower than a year ago. |
| Tax debate | Tax debate |
| HAVE YOUR SAYOil companies are not charities, they exist to make profits for their shareholders.Michael, London, UKSend us your comments | HAVE YOUR SAYOil companies are not charities, they exist to make profits for their shareholders.Michael, London, UKSend us your comments |
| BP and other oil producers have been facing calls from unions for a windfall tax on their profits to help those struggling to cope with higher energy costs. | BP and other oil producers have been facing calls from unions for a windfall tax on their profits to help those struggling to cope with higher energy costs. |
| "A windfall tax now would ensure that the money was there to help the old and vulnerable through these tough times," said Unite general secretary Tony Woodley. | "A windfall tax now would ensure that the money was there to help the old and vulnerable through these tough times," said Unite general secretary Tony Woodley. |
| "Tax the fuel companies now so that those who helped to create these mega-profits get their rightful share of them." | "Tax the fuel companies now so that those who helped to create these mega-profits get their rightful share of them." |
| However, BP insists that it is already one of the UK's largest taxpayers. A company spokesperson told the BBC that the company paid $14.5bn in taxes worldwide last year, including $2.3bn in the UK. | However, BP insists that it is already one of the UK's largest taxpayers. A company spokesperson told the BBC that the company paid $14.5bn in taxes worldwide last year, including $2.3bn in the UK. |
| 'Harassment' | 'Harassment' |
| The company is in the midst of a dispute with its Russian shareholders in its Moscow-based joint venture, TNK-BP. | The company is in the midst of a dispute with its Russian shareholders in its Moscow-based joint venture, TNK-BP. |
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| Some of the problems with BP's Russian joint venture | |
| Its chief executive Robert Dudley temporarily left Russia earlier this month after what he called a campaign of "sustained harasment" during a battle for control of the firm. | Its chief executive Robert Dudley temporarily left Russia earlier this month after what he called a campaign of "sustained harasment" during a battle for control of the firm. |
| BP said it "continues to work to resolve these matters", but it could not predict the outcome if the matters remain unresolved. | BP said it "continues to work to resolve these matters", but it could not predict the outcome if the matters remain unresolved. |
| The joint venture accounts for a quarter of BP's oil production worldwide and is a significant contributor to the group's profits. | The joint venture accounts for a quarter of BP's oil production worldwide and is a significant contributor to the group's profits. |
| BP made a profit before tax of $2bn in the second quarter from its share of TNK-BP, double what it made in the second quarter of 2007. | BP made a profit before tax of $2bn in the second quarter from its share of TNK-BP, double what it made in the second quarter of 2007. |