BP Posts $129M Loss In Q2 On Lower Profit From Gas, Low Carbon Energy Business
BP Posts $129M Loss In Q2 On Lower Profit From Gas, Low Carbon Energy Business
By: Sana Tahir
Forbes Middle East Staff
Jul 30, 2024, 13:17 PM
BP Posts $129M Loss In Q2 On Lower Profit From Gas, Low Carbon Energy Business
BP’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came to $9.6 billion in the April-June quarter, registering a 1.3% year-on-year decline. Image by Jeff Whyte / Shutterstock
British oil and gas giant BP reported a loss attributable to shareholders of $129 million in the second quarter of 2024, mainly caused by lower profits from gas and lower carbon energy business.
Second-quarter performance
The company also posted a replacement cost (RC) loss of $16 million, according to a BP statement on Tuesday.
However, BP’s underlying RC profit climbed 6.5% year-on-year to $2.8 billion in the quarter ended June 30, 2024.
The London-headquartered firm’s operating cash flow surged 28.7% to $8.1 billion from $6.3 billion reported for the same period a year ago.
BP’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came to $9.6 billion in the April-June quarter, registering a 1.3% year-on-year decline.
The capital inflows from the company’s divestments and other proceeds skyrocketed 763.6% to $760 million in the quarter from $88 million for the year-ago period.
The company’s RC loss before interest and tax for the second quarter was $300 million in the quarter, against a $1 billion profit for the previous quarter.
However, the RC profit from its oil production and operations business increased 6.5% quarter on quarter to $3.3 billion.
First-half results
BP also registered a 78.7% year-on-year plunge in its profit for the first half of 2024 to $2.1 billion, down from $10 billion for the same period a year ago.
Besides, there was a 12.7% year-on-year fall in its adjusted EBITDA, which totaled $19.9 billion during the first six months of the current year.
Crucial quote
“We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025,” said BP CEO Murray Auchincloss in the statement.
“Our recent go-ahead of the Kaskida development in the Gulf of Mexico business, and decision to take full ownership of bp Bunge Bioenergia while scaling back plans for new biofuels projects, demonstrate our commitment to delivering as a simpler, more focused, and higher value company,” he added.
Share price
BP shares were up 1.4% to $35.5 as of noon AST Tuesday.
Forbes ranking
BP ranks 47th on the 2024 Forbes Global 2000 2024 list.
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By
Sana Tahir
Forbes Middle East Staff
Sana Tahir is a news writer at Forbes Middle East. Apart from daily business news, she enjoys writing about technology, lifestyle, internet sub-cultures, and issues of social justice.