Internet earnings of £2bn for BP between April and June – but it surely’s a pointy fall from the yr earlier than

BP has recorded a giant drop in earnings within the first half of its monetary yr, as power costs fell from the highs seen after Russia’s invasion of Ukraine.

The oil and gasoline large reported web earnings of simply over $2.5bn (£2bn) for the three months to the top of June.

It’s half the $5bn (£4bn) profit achieved in the preceding three months, the primary quarter of 2023.

When in contrast with earnings in the identical interval final yr, the drop is even steeper – $8.45bn (£6.5bn) was recorded at the moment.

A fall in earnings had been anticipated by analysts, however BP’s outcomes had been worse than anticipated.

BP mentioned it was right down to “significantly lower” refining margins, a “significantly higher level” of upkeep exercise and decrease oil and gasoline costs; however an “exceptional gas marketing and trading result, albeit lower than the first quarter”.

Chief govt Bernard Looney mentioned it was a “resilient” efficiency, “during a period of significant turnaround activity and weaker margins in our refining business”.

Two main oil and gasoline tasks had been began, Mr Looney mentioned, and introduced rising shareholder funds and a share buyback scheme.

“This reflects confidence in our performance and the outlook for cash flow, as well as continued progress reducing our share count,” he mentioned.

A resilient shareholder cost is BP’s “first priority”, the outcomes mentioned.

The International Energy Agency has mentioned no new fossil gasoline challenge is suitable with the globally accepted objective of limiting warming to 1.5C.

After Russia invaded Ukraine, gas and oil prices reached record highs as international locations sought to quickly scale back reliance on Russian imports.

Oil and gasoline producers akin to BP reaped the monetary advantages of those excessive costs and reported record profits in consequence.

A windfall tax was launched by authorities in an effort to rein in earnings and fund power assist measures for shoppers as payments skyrocketed.