London (AFP) – British energy group BP on Tuesday posted a net profit for the second quarter, in contrast to weaker results from energy rivals, as lower exceptional charges offset falling oil prices. Profit after tax came in at $1.63 billion in the April-June period, compared with a net loss of $129 million in the second quarter of 2024, BP said in an earnings statement. Stripping out exceptional items, underlying net profit was down nearly 15 percent.
“This has been another strong quarter for BP operationally and strategically,” chief executive Murray Auchincloss said in the earnings statement. BP on Monday said it made its biggest oil and gas discovery in 25 years off the coast of Brazil. In February, BP launched a major pivot back to its more profitable oil and gas business, shelving its once industry-leading targets on reducing carbon emissions and slashing clean energy investment.
However, energy prices have come under pressure in recent months on concerns that US President Donald Trump’s tariffs will hurt economic growth, while OPEC+ nations have produced more oil. BP managed to post a profit for the second quarter thanks to impairments which were lower than one year earlier, along with a revaluation of assets — notably in relation to liquefied natural gas (LNG) — and divestments.
By contrast, French rival TotalEnergies and US groups ExxonMobil and Chevron posted heavy falls to their net profit in the second quarter. British rival Shell posted a slight increase to its profit after tax for the latest reporting period. Shares in BP gained 1.7 percent in early London deals following its update.
Auchincloss added that the company was launching “a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry.” BP already announced plans this year to cut cleaner energy investment by more than $5 billion annually and offload assets worth a total of $20 billion by 2027. It recently agreed to sell its onshore wind energy business in the United States, while Shell has also scaled back its climate objectives.
BP last month named Albert Manifold as its new chairman, replacing Helge Lund, whose departure was announced amid the strategy reset. The group’s net profit plunged 70 percent in its first quarter, hit by weaker oil prices.
© 2024 AFP
