LONDON – BP yesterday 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% to US$2.13 billion compared with net earnings of US$10 billion in the first six months of last year, BP said in a statement.

Revenue dropped 8% to US$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”.

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.

Despite the plunge in profits, BP’s share price gained 2% on dividend and share buyback announcements as well as thanks to better-than-expected underlying profits in the second quarter, analysts said.

“After the energy crisis in 2022, fuelled by Russia’s conflict in Ukraine which sent oil giants’ profits soaring, BP and its rivals have been getting used to a more normal period for energy earnings,” noted Victoria Scholar, head of investment at Interactive Investor. – Nampa/AFP

Photo: Profits

Caption: Sizeable hit… BP’s revenue dropped 8% to US$98 billion in the latest reporting period.

 Photo: Contributed