Energy giant BP said today that it earned nearly $2.6 billion in the second quarter, almost half of what it posted in the first three months of the year as oil and natural gas prices that surged after Russia’s invasion of Ukraine have fallen, the Associated Press reports.
The company’s underlying replacement cost profit, which excludes one-time items and fluctuations in the value of inventories, was down nearly 70% from the April-to-June period one year ago, when it brought in $8.45 billion.
It’s the latest major oil and gas company to see profits fall from record highs last year, following British rival Shell, France’s TotalEnergies, and U.S.-based ExxonMobil.
Energy costs were a major driver of inflation around the world, as households and businesses faced ever-higher electricity and heating bills while energy companies’ profits skyrocketed.
BP, which saw its earnings last year double to a record high $27.7 billion, said it was awarded rights to develop two offshore wind projects in Germany — its first in continental Europe. It also noted progress in hydrogen projects.
Energy companies are facing increasing pressure to do more to reduce such emissions that cause climate change, but fossil fuels have remained an important part of the mix. BP says two new oil and gas projects have launched in the second quarter.
