Oil giant BP, which recently pivoted away from green energy, posted Tuesday better-than-expected quarterly earnings and announced a fresh review of costs.
The British group's return to profit in the second quarter contrasted with weaker results from energy rivals, as lower exceptional charges offset falling oil prices.
Profit after tax came in at $1.63 billion in the April-June period, compared with a net loss of $129 million in the second quarter of 2024, BP said in an earnings statement.
Stripping out exceptional items, underlying net profit was down nearly 15 percent.
"This has been another strong quarter for BP operationally and strategically," chief executive Murray Auchincloss said in the earnings statement.
BP on Monday said it made its biggest oil and gas discovery in 25 years off the coast of Brazil.
In February, BP launched a major pivot back to its more profitable oil and gas business, shelving its once industry-leading targets on reducing carbon emissions and slashing clean energy investment.
However, energy prices have come under pressure in recent months on concerns that US President Donald Trump's tariffs will hurt economic growth, while OPEC+ nations have produced more oil.
BP managed to post a profit for the second quarter thanks to impairments which were lower than one year earlier, along with a revaluation of assets -- notably in relation to liquefied natural gas (LNG) -- and divestments.
Sector woes
By contrast, US rivals ExxonMobil and Chevron, along with French group TotalEnergies, posted heavy falls to their net profits in the second quarter.
As did oil giant Saudi Aramco, which on Tuesday announced its 10th straight drop in quarterly profits as a slump in prices hit revenues.
The average price for Brent North Sea crude, the international benchmark, stood at $67.9 per barrel in the second quarter, down from $85 one year earlier.
British rival Shell still managed to post a slight increase to its profit after tax for the latest reporting period.
As for BP, Auchincloss said the company was launching "a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry".
Shares in BP gained 2.2 percent in London morning deals following its results and news of a fresh dividend and share buyback.
"A slick turnaround plan pumped up BP's second-quarter results," noted Derren Nathan, head of equity research at Hargreaves Lansdown.
"Despite lower oil and gas prices, it's managed to push underlying profits up by nearly $1 billion from the first quarter to $2.4 billion, well ahead of analyst forecasts."
Nathan added that "shareholders will be glad to see this matched with financial discipline".
BP already announced plans this year to cut cleaner energy investment by more than $5 billion annually and offload assets worth a total of $20 billion by 2027.
It recently agreed to sell its onshore wind energy business in the United States, while Shell has also scaled back its climate objectives.
BP last month named Albert Manifold as its new chairman, replacing Helge Lund, whose departure was announced amid the strategy reset.
The group's net profit plunged 70 percent in its first quarter, hit by weaker oil prices.
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