Key Points

  • Oil major BP has reported a drop of nearly 70% YoY in the second quarter of 2023
  • At the same time, the British energy major posted a second-quarter underlying replacement cost profit of $2.6 billion

On Tuesday, Oil major BP announced that it was expecting a nearly 70 % drop in its Q2 profits year on year due to the weakening of fossil fuel prices, a trend observed across the industry.

Oil major BP announces 70% drop in profits in Q2 2023 YoY

Analysts now expect Oil major BP to report a second-quarter profit of around $3.5 billion per a report by Refinitiv. At the same time, the British energy major posted a Q2 underlying replacement cost profit (used as a proxy for net profit) of $2.6 billion.

The company’s report comes short of the Q2 profits of 2023, which had been recorded to be $4.96 billion, and the $8.5 billion in profits for the same company from Q2 2022. The company explained that the orbits were impacted by significantly lower realized refining margins, a higher level of turnaround and maintenance activities, and lower oil prices in the markets.

Nonetheless, the company has boosted its dividend by 10% to 7.27 cents per ordinary share for Q2 and said it would repurchase $1.5 billion of its shares spread over Q3 2023. This report is not a unicorn; other companies have struggled to match the bumper profits recorded in the same period in 2022.

Shell and Totalenergies reported a steep drop in Q2 2023 YoY profits last Thursday. In the US, Exxon Mobil also had a slump of 56% YoY in Q2 2023 profits. Keep watching Fintech Express for more updates on oil markets and other fintech-related developments.