Oil major BP posts 70% drop in second-quarter profit, raises dividend by 10%

LONDON — Oil major BP on Tuesday reported a astir 70% year-on-year driblet successful second-quarter profits connected the backmost of weaker fossil substance prices, echoing a inclination observed crossed the vigor industry.

The British vigor large posted second-quarter underlying replacement outgo profit, utilized arsenic a proxy for nett profit, of $2.6 billion. Analysts had expected BP to study second-quarter nett of $3.5 billion, according to estimates collated by Refinitiv.

The second-quarter effect compared with a nett of $4.96 billion recorded successful the archetypal 3 months of the twelvemonth and with the $8.5 billion logged successful the 2nd 4th of 2022.

BP boosted its dividend by 10% to 7.27 cents per mean stock for the 2nd quarter. The vigor elephantine besides said it would repurchase $1.5 cardinal of its shares implicit the adjacent 3 months.

Oil majors person failed to lucifer the bumper profits posted during the aforesaid play of past twelvemonth amid weaker commodity prices.

British rival Shell and French lipid large TotalEnergies connected Thursday reported a steep drop successful second-quarter profit, portion U.S.-based Exxon Mobil's second-quarter nett slumped 56% year-on-year.

The West's 5 largest lipid companies raked successful combined profits of nearly $200 billion successful 2022, arsenic lipid and state prices soared pursuing Russia's full-scale penetration of Ukraine. For its part, BP reported yearly grounds nett of $27.7 cardinal for the afloat twelvemonth of 2022.

Oil and state prices came nether unit successful the archetypal fractional of this year, however, arsenic planetary economical jitters outweighed supply-demand fundamentals.

Shares of BP are astir 1.7% higher year-to-date.