British oil and gas company BP saw its underlying profit fall in the second quarter to $2.35 billion (around CZK 50 billion) from $2.76 billion a year earlier. However, the result significantly exceeded analysts’ expectations, which, according to an LSEG survey, averaged $1.81 billion. The company announced its quarterly results in a press release today.
Profit Trends and New Projects
BP defines underlying profit as the result after accounting for the cost of replacing production. In the industry, this metric is used as the equivalent of net profit.
“It was another successful quarter for BP, both operationally and strategically,” said BP CEO Murray Auchincloss. “So far this year, we have brought five major oil and gas production projects online and made five discoveries, including a significant discovery in the Bumerangue block in Brazil,” he added.
Largest Discovery in 25 Years and Market Response
On Monday, the company announced its largest oil and gas field discovery in 25 years, located off the coast of Brazil. The field is situated in the Bumerangue block in the Santos Basin, at a depth of 2,372 meters. The company obtained rights to this deepwater area in December 2022.
According to CNBC, BP is now working to rebuild investor confidence after a long period in which its results lagged behind competitors. Auchincloss said today that BP will review its business operations and consider further measures to cut costs. BP has recently been the subject of speculation about a potential takeover. This prompted its domestic rival Shell at the end of June to issue a statement saying it was not considering making an offer for BP. Shell had been one of the rumored potential suitors.
Source: ČTK
