BP posted underlying replacement cost profit of $5.7 billion for the second quarter of 2026, a $2.5 billion increase from the first quarter, driven by higher price realizations and strong trading performance. Operating cash flow reached $10.9 billion, including a $1 billion working capital build and $1 billion in interest payments. Upstream production fell 6% to 2.2 million barrels of oil equivalent per day due to scheduled maintenance in the Gulf of America, Middle East disruptions, and operational issues in the North Sea and Indonesia. Refining throughput declined 4% to 1.5 million barrels per day on higher planned turnaround activity. Net debt dropped by $3.1 billion to $22.3 billion, and total financial obligations, including hybrids and Gulf of America settlement liabilities, fell by approximately $7 billion. The company announced a 4% increase in the dividend per share and revised full-year capital expenditure guidance to $13.5 billion to $14 billion, reflecting a decision to delay asset farm-downs to maximize value. Full-year divestment proceeds are now expected to be $8 billion to $9 billion, including the completed sale of the Gelsenkirchen refinery. Management also disclosed plans to market the U.S. renewable natural gas business Archaea Energy and launched a process to sell the North Sea portfolio as part of a simplification strategy. CEO Marguerite O'Neill set five priorities to improve performance, including strengthening the balance sheet, simplifying the portfolio, investing with discipline, driving cost efficiency, and fostering a culture of accountability.
BP PLCQ2 profit beat, dividend raised 4%, and net debt reduced by $3.1B.
