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BP begins costs review as quarterly profits of £1.77bn beat forecast

about 13 hours ago
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The oil and gas group BP is launching a fresh cost-cutting scheme, despite reporting better-than-expected profits, as it tries to do more for its shareholders to fend off pressure from activist investors.The fossil fuel company said it would begin a fresh review of its business when its new chair, Albert Manifold, joins the board in September.BP reported a rise in profits to $2.35bn (£1.77bn) between April and June, a drop of 15% on the same period a year earlier when the company benefited from higher oil and gas prices.

However, it was an increase on the $1.38bn reported in the January to March quarter, and beat analysts’ estimates of $1.8bn underlying profits.Murray Auchincloss, BP’s chief executive, said in a statement on Tuesday that the FTSE 100 company had performed well “operationally and strategically”, even though crude oil is trading at about 10% lower than it was in the first quarter.Currently trading at just under $66 a barrel, Brent crude prices are lower than last year’s average of $80 a barrel.

Auchincloss added: “So far this year we’ve brought five new oil and gas major projects onstream, sanctioned four more and made 10 exploration discoveries.”Disclosing a 4% increase in the shareholder dividend to 8.32 cents in the first quarter, he said: “BP can and will do better for its investors.”The CEO said he and Manifold, the former boss of the building material company CRH who takes the reins on 1 October, had agreed to conduct a review of its businesses; this year BP revealed it would cut more than $5bn from its green investment plan.Under the embattled current chair, Helge Lund, BP invested heavily in the offshore wind industry, which has been subject to increasing costs in recent years, at the same time as its rivals took advantage of the surge in fossil fuel prices after Russia’s full-scale invasion of Ukraine.

BP’s latest overhaul was just six months ago, when Auchincloss promised to “fundamentally reset” the oil company’s strategy.This revamp met little investor enthusiasm and failed to increase its share price.BP’s shares are trading about 10% lower than at the time of Auchincloss’s announcement.The company is also under pressure from Elliott Management, the feared New York hedge fund known for its attempts to shake up listed companies, which has built up a stake in BP after growing dissatisfaction among shareholders over the company’s plans to curb its fossil fuel production in favour of green investments.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionThe activist investor has been pushing BP to cut its operating expenses more aggressively and has been demanding more cost reductions.

Lund’s forthcoming departure helps BP to sever ties with its botched attempt to reinvent itself as a net zero energy company, forged during Lund’s tenure and that of its former chief executive Bernard Looney.Russ Mould, an investment director at broker AJ Bell, said: “At present BP still has a modestly larger workforce than Shell – based on the companies’ respective last reported headcounts – despite being a significantly smaller business in terms of its valuation and annual revenue.”BP said this week it had made its largest oil and gas discovery of the past 25 years off the coast of Brazil at a time when it is shifting away from renewables and refocusing on fossil fuels.The company is carrying out tests at the Santos basin, which is located in deep waters.It marks its 10th oil discovery of the year and could be its largest since its discovery at the Shah Deniz gasfield in Azerbaijan in 1999.

societySee all
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Home cooking and minimally processed foods best for weight loss, study finds

People lose more weight if they cook minimally processed food from scratch than if they eat ultra-processed and ready-made foods, according to the first study to establish a clear link between ultra-processed foods (UPFs) and weight.Trial participants were given one of two diets with the same nutritional profile for eight weeks. One diet was made up of UPFs while the other comprised minimally processed foods.When the first group ate breakfast bars and ready-made lasagne, for example, the second ate oats soaked in milk and natural yoghurt and homemade spaghetti bolognese.At the end of the trial, participants on the second diet had lost twice as much weight as those on the first

1 day ago
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Experts express concern for future of Health Survey for England

Public health experts have expressed concern for the future of a “vital” health survey, after the government said it would no longer be run by NHS England.The Health Survey for England, launched in 1991, is an annual study that collects data from about 8,000 adults and 2,000 children across the country, through face-to-face interviews and questionnaires.It gathers data on a range of important health metrics such as height and weight, smoking and alcohol use, with public experts describing it as an “arterial” source of data due it being nationally representative and high quality.At a briefing in July by the UK Data Service, the government said the 2025 edition would be the last one because “NHS England will not be prioritising population health surveys in its long-term strategic work plan”.The news comes amid unprecedented cost cutting within the NHS, as the health service faces a predicted shortfall of nearly £7

1 day ago
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Call to crack down on ‘hooch’ and medicine in prisons after Dorset death

Ministers should draw up a specific policy to reduce inmate access to illicitly brewed alcohol and medication, a coroner has said, after the death of a vulnerable prisoner.An inquest jury found last month that Sheldon Jeans, who was discovered dead in his cell at HMP Guys Marsh in November 2022, had died as a result of consuming illegal alcohol and four different medications that had not been prescribed to him, recording death by misadventure.Rachael Griffin, the senior Dorset coroner, issued a prevention of future deaths (PFD) report in response to findings at the inquest, highlighting national policy and guidance relating to the handling of hooch and medication in prisons as areas for concern.“In my opinion there is a risk that future deaths could occur unless action is taken … There is a lack of national policy, and local guidance at HMP Guys Marsh, to inform staff working in prisons of the dangers of illicitly brewed alcohol, also known as hooch,” she wrote.The report has been sent to the Department of Health and Social Care, HM Prison and Probation Service, HMP Guys Marsh, and Oxleas NHS foundation trust, requesting a response by 19 September 2025 detailing actions to be taken and a timetable for that action

1 day ago
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A Clockwork Orange estate fights ‘art washing’ redevelopment plans

Protesters staged a sit-in at a brutalist 1960s estate featured in Stanley Kubrick’s dystopic film, A Clockwork Orange, to highlight concerns about a development they say amounts to gentrification and art washing.The brief occupation on Saturday of the Lakeside Centre in Thamesmead, an arts centre in south-east London, is part of a wider battle by longstanding residents, who claim that the soul of the community, along with many socially rented homes, will be lost as part of a huge regeneration by the housing association Peabody.Thamesmead was conceived by a group of architects at the former Greater London Council in the 1960s and hailed as “the town of tomorrow”, providing alternative housing to replace dilapidated inner-city homes in London.Lesnes, one of the estates built in the area in the 1960s, was famously depicted in A Clockwork Orange.Sixty years on, improvements are urgently needed and Bexley, like other councils, does not have the cash to do this

1 day ago
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‘Cat-sized’ rat found in Teesside town puts focus on pest control cuts

Cuts to council pest control services are being blamed for a town’s rodent problem, which includes the discovery of a supersize rat said to be 22in (56cm) from nose to tail.The giant rat, about the length of the carry-on luggage people might be wheeling on to a flight – or, if not on holiday, a desktop monitor – was found inside a person’s home in Normanby, Teesside.“I had to do a double take when I saw a picture of it,” said Stephen Martin, a Conservative councillor on Redcar and Cleveland council. “You can tell by the size of the bag that it’s not a normal size. It’s the size of a cat

1 day ago
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UK pornography taskforce to propose banning ‘barely legal’ content after Channel 4 documentary airs

The new pornography taskforce will propose legislation this autumn aimed at banning a type of “barely legal” content produced by the porn star Bonnie Blue, the Guardian has learned.The proposed action by the independent pornography taskforce, launched last month by the Conservative peer Gabby Bertin, comes in response to the broadcast of the Channel 4 documentary 1000 Men and Me: The Bonnie Blue Story. The programme followed the performer for six months and included her claim to have had sex with 1,057 clients over the course of 12 hours.Visa and Smirnoff are among a number of businesses that have pulled online advertisements from streaming of the documentary, after reviewing the content. The film was condemned by the children’s commissioner for England, Dame Rachel de Souza, for “glamorising and normalising” extreme pornography

2 days ago
technologySee all
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‘We didn’t vote for ChatGPT’: Swedish PM under fire for using AI in role

about 12 hours ago
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Google says its new ‘world model’ could train AI robots in virtual warehouses

about 13 hours ago
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Should big tech be allowed to mine Australians’ text and data to train AI? The Productivity Commission is considering it

about 15 hours ago
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Dial N for nostalgia: landlines are back | Brief letters

1 day ago
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George Osborne says UK has been left behind in cryptocurrency boom

1 day ago
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Tesla board awards $29bn of shares to Elon Musk

1 day ago