Oil giant BP reports tumbling profits in first half

BP logos are seen at a BP petrol and diesel filling station in Hildenborough, southeast of London on June 15, 2020. (Photo by Ben STANSALL / AFP)

London, United Kingdom — BP on Tuesday announced tumbling profits for the first half, with the British oil and gas giant hit by depreciation of assets and falling revenue.

Profit after tax slumped 79 percent to $2.13 billion compared with net earnings of $10 billion in the first six months of last year, BP said in a statement.

Revenue dropped eight percent to $98 billion in the latest reporting period.

BP said increased volume and lower exploration write-offs were “partly offset by increased depreciation charges and higher costs”.

READ: BP takes hit on cut to oil refining in Germany

The group earlier this month flagged to markets that its latest earnings would take a sizeable hit from a cut to oil refining in Germany.

Energy majors are also feeling the impact of declining gas prices, which have fallen heavily since soaring after the invasion of Ukraine by major energy producer Russia in early 2022.

Against this backdrop, BP “businesses continue to operate safely and efficiently”, chief executive Murray Auchincloss said in the earnings statement.

Auchincloss, a veteran BP employee, became CEO in January following a period as interim boss in the wake of Bernard Looney’s sacking.

Looney was dismissed over his failure to disclose past relationships with colleagues.