The oil and gas giant reported net profits of just over $2.5bn (£2bn) for the three months to the end of June.

It's half the $5bn (£4bn) profit achieved in the preceding three months, the first quarter of 2023.

When compared with profits in the same period last year, the drop is even steeper - $8.45bn (£6.5bn) was recorded at that time.

A fall in profits had been expected by analysts, but BP's results were worse than expected.

BP said it was down to "significantly lower" refining margins, a "significantly higher level" of maintenance activity and lower oil and gas prices; but an "exceptional gas marketing and trading result, albeit lower than the first quarter".

Chief executive Bernard Looney said it was a "resilient" performance, "during a period of significant turnaround activity and weaker margins in our refining business".

Two major oil and gas projects were started, Mr Looney said, and announced growing shareholder payments by 10% and a $1.5bn (£1.17bn) share buyback scheme.

"This reflects confidence in our performance and the outlook for cash flow, as well as continued progress reducing our share count," he said.

A resilient shareholder payment is BP's "first priority", the results said.

The International Energy Agency has said no new fossil fuel project is compatible with the globally accepted goal of limiting warming to 1.5C.

After Russia invaded Ukraine, gas and oil prices reached record highs as countries sought to rapidly reduce reliance on Russian imports.

Oil and gas producers such as BP reaped the financial benefits of these high prices and reported record profits as a result but, as seen with Shell's latest results, those profits are no longer at an all time high.

A windfall tax was introduced by government in an effort to rein in profits and fund energy support measures for consumers as bills skyrocketed.

Ed Miliband, the former Labour leader and current shadow climate and net zero secretary, said the figures demonstrate the "continuing scandal of the Tory failure to act on the windfalls of war being pocketed by the oil and gas producers".

Mr Miliband called on the prime minister to fix the "gaping loopholes" in the tax on oil and gas profits, "not handing them out billions of taxpayer subsidy".

"Labour would bring in a proper windfall tax on oil and gas giants to help tackle the cost of living crisis, alongside our plan to make Britain a clean energy superpower so we can lower bills for families and businesses," he said.