1/3
Aug. 1 (UPI) — Following the trend set by its U.S. counterparts, BP, the British energy company, reported a significant decrease in second-quarter earnings due to the low-price scenario in the first half of the year.
BP announced earnings of approximately $2.6 billion for the three-month period ending in June, compared to $8.4 billion during the same period last year.
“Despite significant turnaround activity and weaker margins in our refining business, our underlying performance remained resilient, with good cash delivery,” said CEO Bernard Looney.
Chevron and ExxonMobil also reported sharp declines in quarterly revenue compared to the previous year.
Chevron’s second-quarter earnings of $6 billion were nearly half of what they were last year. This was attributed to lower sale prices for its products and weaker refinery margins.
Exxon reported earnings of $7.9 billion, a decrease from $17.9 billion during the same period last year. They cited lower natural gas realizations and industry refining margins as the reasons for the decline.
The global market faced challenges finding alternatives to Russian oil and gas due to sanctions, leading to a spike in commodities prices. Brent crude oil prices reached over $123 per barrel last year but have since decreased to around $84 per barrel.
Despite the decrease in revenue, BP remains committed to returning value to its shareholders. The company stated, “Our resilient performance, strategic progress, and positive cash flow outlook are reflected in a 10% increase in quarterly dividends and a further $1.5 billion share buyback.”
Energy companies have faced criticism for prioritizing shareholder returns over investments in new production and technologies, especially with concerns about a supply-side deficit in the second half of the year and the shift towards cleaner energy sources.
However, BP emphasized that “a resilient dividend is BP’s first priority within its disciplined financial framework.” In addition, they highlighted their progress in the energy transition, such as obtaining development rights for two offshore wind facilities in Germany with a potential energy capacity of 4 gigawatts. They also started production at the Mad Dog 2 prospect in the Gulf of Mexico, their first operation since the Deepwater Horizon tragedy.
