Shell and BP are expected to suffer a drop in profits of more than 40 percent after the fall in gas and oil prices.
London-listed oil majors, which are due to reveal their results, earned around £31 billion in 2023, according to Refinitiv forecasts.
This is no contrast to 2022, where they raked in £55bn after energy prices soared following Russia’s invasion of Ukraine.
Recession: Shell and BP expected to see profits fall by more than 40 percent
This increase led to a sharp rise in inflation and contributed significantly to the cost of living crisis.
In 2022, the average price of Brent crude was around $100 (£78) a barrel, but fell to $82 last year.
Declining profits could affect companies’ ability to return additional cash to investors through share buybacks.
They have been supportive of aggressive share buyback programs after making historic dividend cuts during the Covid pandemic.
Shell will publish its annual results on Thursday. It is predicted to have earned £20.3 billion in 2023. BP is expected to have earned £11 billion in 2023. The company will report on February 6.