BP profits plunge as oil prices ease
BP, the energy giant, has disclosed a significant decline in profits following a downturn in oil prices last year.
In 2023, profits amounted to $13.8 billion (£11 billion), a stark drop from the previous year’s record high of $27.7 billion.
Energy companies witnessed substantial gains as oil and gas prices surged in the wake of Russia’s invasion of Ukraine, driven by concerns over supply shortages.
Although household energy expenses have decreased since 2022, they remain elevated.
These financial results mark the inaugural report under the leadership of BP’s new chief executive, Murray Auchincloss, following the resignation of former CEO Bernard Looney in September.
Looney stepped down after acknowledging lapses in transparency regarding his personal relationships within the company’s ranks. BP’s board characterised Looney’s actions as “serious misconduct,” resulting in the forfeiture of up to £32.4 million in compensation and benefits.
The profit downturn experienced by BP resonates with the recent earnings report from its competitor Shell, which disclosed profits of $28.2 billion for the year, down from $39.9 billion in 2022.