British energy giant BP reported a 72 percent slump in net profit for the first quarter, attributed to declining gas prices compared to the previous year.
According to BP’s statement, profit after tax plummeted to $2.3 billion from $8.2 billion in the first three months of 2023.
Total revenue also experienced a decline, dropping 13 percent to $48.9 billion.
In addition to the financial results, BP also announced plans for “at least” $2 billion in cost savings by the end of 2026.
“We are simplifying and reducing complexity across BP,” stated chief executive Murray Auchincloss in the earnings report.
This announcement follows a similar trend set by BP’s rival Shell, which reported a 15 percent drop in net profit to $7.4 billion in the first quarter.
The decline in gas prices is attributed to the significant drop since the escalation following Russia’s invasion of Ukraine, a major energy producer, in early 2022.
