BP has seen profits fall to $1.3 billion (£0.8bn) in the second quarter of this year.
The figure is nearly two-thirds less compared to the same period last year, when the company’s profits stood at $3.6 billion (£2.3bn).
It follows costs worth $7.5 billion (£4.8bn) related to the 2010 Gulf of Mexico oil spill after which it registered a loss of $6.3 billion (£4bn) in the first half of the year.
The rig explosion and spill killed 11 workers and spewed oil to the shorelines of several states for nearly three months.
Earlier this month, BP reached an $18.7 billion (£12bn) settlement with the US Government, believed to be the largest corporate settlement in US history.
The company has also lowered its expected capital spending to below $20 billion (£12.8bn) after cutting it by 13% this year.
The result also reflects the impact of continued low oil prices.
Bob Dudley, BP’s Chief Executive, said: “The external environment remains challenging but BP moved quickly in response and we continue to do so. Our work to increase efficiency and reduce costs is embedding sustainable benefits throughout the Group and we continue with capital discipline and divestments.
“In the past few weeks oil prices have fallen back in response to continued oversupply and market weakness and the recent agreements regarding Iran. I am confident that positioning BP for a period of weaker prices is the right course to take and will serve the company well for the future.”
Earlier this year the British oil giant cut 300 North Sea jobs.