LONDON — Oil major BP on Tuesday reported a sharp fall in second-quarter profits on the back of weaker fossil fuel prices, echoing a trend observed across the energy industry.
The British energy major posted second-quarter underlying replacement cost profit, used as a proxy for net profit, of $2.6 billion. Analysts had expected BP to report second-quarter profit of $3.5 billion, according to estimates collated by Refinitiv.
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Oil majors have failed to match the bumper profits posted during the same period of last year amid weaker commodity prices.
The West’s five largest oil companies raked in combined profits of nearly $200 billion in 2022, as oil and gas prices soared following Russia’s full-scale invasion of Ukraine. For its part, BP reported annual record profit of $27.7 billion for the full year of 2022.
Oil and gas prices came under pressure in the first half of this year, however, as global economic jitters outweighed supply-demand fundamentals.
Shares of BP are roughly 1.7% higher year-to-date.
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