Shell and BP are expected to suffer a plunge in their profits of more than 40 per cent after a slump in gas and oil prices.
The London-listed oil majors, which are due to unveil their results, made about £31billion in 2023, according to Refinitiv forecasts.
This pales in contrast with 2022, when they raked in £55billion after energy prices soared following Russia’s invasion of Ukraine.
Slump: Shell and BP are expected to suffer a plunge in their profits of more than 40 per cent
The spike drove a sharp rise in inflation and was a major contributor to the cost of living crisis.
In 2022, the average Brent crude price was about $100 (£78) a barrel, but this dropped to $82 last year.
The fall in profits may affect the companies’ ability to hand extra cash back to investors through share buybacks.
They have been keen on aggressive programmes to repurchase their own shares after making historic cuts to their dividends during the Covid pandemic.
Shell will report its full year results on Thursday. It is forecast to have made £20.3 billion in 2023. BP is expected to have made £11billion in 2023. The company will report on February 6.
