Oil giant BP has reported a 36 per cent fall in second-quarter profits from $3.4 billion last year to $2.1 billion this year.
The figure represents a quarter-on-quarter increase from a first quarter low of $924 million.
For the half year, the year-on-year fall was even greater, with replacement cost profit of $1.217 billion - less than half the first half 2001 figure of $5.649 billion.
Citing a less favourable exploration, production and refining environment than a year ago as the reason for the drop, the company said profits from oil were down $4 per barrel, for gas down $2 per thousand cubic feet and a refining margin down $3 per barrel.
But the company said it was on track for the year’s targets.
"The world economy continued to recover during the second quarter and further growth is expected in the third quarter, though recent financial market weakness poses a downside risk to this economic outlook," BP Group Chief Executive Lord Browne said.