BP (BP.L) has posted its biggest profit since 2008 as it cashed in on soaring energy prices, just as families face winter energy bill pain.

The energy giant saw underlying profits hit $8.45bn (£6.9bn) – more than triple the amount it made at the same time last year.

The figure is the second highest in the firm's history and takes its half-year profits to $14.6bn.

It came as consultancy Cornwall Insight said energy bills in the UK could reach £3,615 in the new year – hundreds more than previously predicted.

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The average annual bill stood at just £1,400 in October 2021, but that figure has climbed as the price cap continues to rise alongside surging wholesale costs.

BP chief executive Bernard Looney said: "Today's results show that BP continues to perform while transforming.

"Our people have continued to work hard throughout the quarter helping to solve the energy trilemma – secure, affordable and lower carbon energy.

"We do this by providing the oil and gas the world needs today – while at the same time, investing to accelerate the energy transition."

The group increased its dividend by 10% to $0.06 a share and committed to buying back $3.5bn of shares in the third quarter of 2022 after completing $2.5bn of share buybacks between April and July.

BP's share price jumped following the announcement it would boost shareholder payout.

Richard Hunter, head of markets at Interactive Investor, said: "An increase of 10% to the dividend leaves the yield at a projected level of 4.7%, with the likelihood of more increases given the current backdrop. A further share buyback programme of $3.5bn has also been announced, which should provide some support to the share price, while net debt has been reduced by a significant 30% over the half-year to now stand at $22.8bn.

"Of course, the oil price has been a major factor in enabling this largesse. Despite a recent dip relating to demand concerns in the event of a global recession, the price of oil remains up by 27% in the year to date, and the current level of Brent at around $100 per barrel compares to what BP describes as its 'cash balance point' of $40."