Oil giant BP has revealed that profits tumbled by more than two-thirds over the latest quarter, falling below expectations.
The company said on Tuesday that it will hand more cash to investors through higher dividends and a further share buyback despite the weaker performance.
The FTSE 100 giant posted underlying replacement cost profit – the firm’s preferred measure – of $2.59 billion (€2.4 billion) for the second quarter of 2023.
That compares with an $8.45 billion profit over the same period last year, when it was boosted by a surge in oil and gas prices.
BP blamed the decline in profits on planned maintenance work and lower margins in its refining business.
It comes a week after rival oil major Shell also delivered weaker-than-expected profits for its latest quarter.
BP said the performance takes its total profits for the first half of 2023 to $7.5 billion.
The company added that its North Sea business paid $970 million in tax over the half-year, with $460 million due to the energy profit levy windfall tax.
The update comes a day after British prime minister Rishi Sunak insisted he wants to “max out” developments in the North Sea and claimed Labour’s refusal to support new oil and gas fields would be “bad for the British economy”.
BP chief executive Bernard Looney said: “Another quarter of performing while transforming.
“Our underlying performance was resilient with good cash delivery during a period of significant turnaround activity and weaker margins in our refining business.
“We’re delivering our strategy at pace – we’ve started up two major oil and gas projects to help keep energy flowing today and we’re accelerating our transformation through our five transition growth engines.
“And we’re delivering for shareholders, growing our dividend and announcing a further share buyback.”
Imogen Dow, warm homes lead at Friends of the Earth, said: “As BP reports its quarterly profits have fallen, let’s not forget that 2022 was its most profitable year on record, and that it’s still the beneficiary of massive tax breaks from the UK Government.
“Meanwhile, the drop in wholesale gas and oil prices is yet to make any material difference to the nation’s bills, which are projected to remain high for some time to come.
“This means millions more are likely to struggle through bitterly cold temperatures in homes they can’t afford to heat when winter rolls around.”
