BP announces Q2 2026 results

bp has announced Q2 2026 results.

Stronger earnings; setting priorities to accelerate delivery

• Stronger financial performance: 2Q 2026 underlying RC profit $5.7 billion, $2.5 billion higher than the prior quarter reflecting the strength of bp’s integrated operational model; operating cash flow $10.9 billion after taking into account a $1.0 billion adjusted working capital* build(C).
• Operating performance: 2Q 2026 upstream plant reliability 92.4% (1Q 2026 95.7%); reported production 2.2mmboe/d (1Q 2026 2.3mmboe/d); refining availability 94.7% (1Q 2026 96.3%); refining throughput 1,467mb/d (1Q 2026 1,527mb/d).
• Strategic progress on portfolio and balance sheet: Reached an agreement to sell Austrian retail business; agreed terms to bring partners into Kirkuk; completed the sale of Gelsenkirchen refinery, launched processes to market our North Sea business and Archaea Energy; the total of net debt, hybrid bonds and securities, leases and Gulf of America settlement liabilities reduced by $6.9 billion.
• Shareholder returns: 2Q 2026 dividend per ordinary share of 8.66 cents, 4% increase.

Meg O’Neill, Chief executive officer

'This is my first full quarter at bp, and it has been marked by one of the most disrupted periods in the global energy market. Through that, bp’s team has stepped up, working tirelessly to keep energy flowing for our customers.

Financially, we delivered a strong quarter, with an underlying replacement cost profit of $5.7 billion ($2.5 billion higher than last quarter) and an operating cash flow of $10.9 billion, after a working capital build of $1.0 billion.

We made good progress strengthening bp’s balance sheet. We also took steps to simplify and strengthen bp. In recent weeks, we sold our Gelsenkirchen refinery, agreed to sell our retail business in Austria and announced our intention to sell our North Sea business in the UK. Today, we are announcing our intention to sell Archaea, our biogas business in the US.

But there are areas where our performance fell short. Operationally, our plants didn’t run as well as they did last quarter – upstream plant reliability was 92.4%, compared to 95.7%, and production was down and our refineries processed less crude. This was due, in part, to planned maintenance and the conflict in the Middle East, but this is a reminder that we have more to do to deliver consistent operational performance.'

Where we must improve

'Since I joined bp, I have spent time with bp’s teams on the frontline and met investors, business partners, governments and other key stakeholders. In four months, I’ve seen enough to know this company can be extraordinary – from our high-quality assets to our integrated model, deep capabilities, strong partnerships and exceptional people.

However, we are not making the most of our potential. Our performance over the past few years has not met our own expectations, let alone those of our shareholders. We have not delivered consistently; we have written off too much value; and our costs and liabilities are not resilient enough in a low price environment.

My job is to help make bp the best we can be. We need to take a clear look at ourselves: assessing what needs to change, stopping what holds us back and building strength where it matters. We have to get fit to grow. To do so, I am laying out five priorities to deliver a step change in performance and grow shareholder value.'

Priorities to deliver a step change in performance

1. Strengthening the balance sheet. This quarter we reduced the total of net debt, hybrids, leases and Gulf of America settlement liabilities by more than 11% compared to last quarter. That is still not enough – we need to do more. Financial resilience gives us greater flexibility to invest to grow through the cycle and reward our shareholders.
2. Simplifying the portfolio based on value, not sentiment nor history. We have to focus on the assets with the strongest potential to deliver competitive returns and long-term value – just as we have done with our decisions on the North Sea and Archaea.
3. Investing with greater discipline to ensure every dollar of capital competes. Our decision to sell Bay du Nord and free up the capital shows that discipline in action. We must keep challenging ourselves, using our balanced investment criteria to make decisions rooted in profitability, cash generation and market realities. I am very clear on this, we need to compete in the weight class we are in.
4. Driving operational excellence. We need to run our assets safely, reliably and with greater cost efficiency. We have made progress on reducing structural costs, but we have not improved enough where it matters most: the bottom line. We need to move faster, and we have both the opportunity and the technology to do this. Operational excellence is also about working safely with people, communities and the environment; it helps us work to deliver energy that is secure, affordable and lower-carbon, where it makes business sense – and it is how we will make bp more competitive.
5. Hardwiring high-performance and accountability into bp. We must make better, faster decisions, reduce complexity and sharpen accountability. Last month, we moved to an Upstream and Downstream organization, supported by our world-class trading business. This integrated model is a competitive advantage and an important first step.(d)

Looking ahead

We will be transparent about how we progress – and judge ourselves by our results. I want the organization focused on execution: deliver what we said, faster and with greater intensity. In three words: focus, perform, grow.

We know what we need to do, we are taking urgent action and I am confident that this is how we will grow long-term value for shareholders.'

(a) Divestment proceeds are disposal proceeds as per the condensed group cash flow statement.

(b) See Note 9 for more information.

(c) Change in working capital adjusted for inventory holding gains, fair value accounting effects relating to subsidiaries and other adjusting items. See page 29.

(d) Reportable segments for external financial reporting will remain unchanged until 31 December 2026 as the financial reporting aspects of the new segment model will take time to implement.

RC profit (loss), underlying RC profit, net debt, underlying RC profit per ordinary share, underlying RC profit per ADS and adjusted working capital are non-IFRS measures. Inventory holding (gains) losses and adjusting items are non-IFRS adjustments.

Definitions are provided in the Glossary on page 34. Non-IFRS measures are marked with an asterisk.

2Q 2026 financial results summary

• Underlying RC profit* for the quarter was $5.7 billion, compared with $3.2 billion for the previous quarter. Compared with the first quarter 2026, the underlying result mainly reflects higher liquids and gas realizations including the impact of price lags, stronger realized refining margins and stronger customers result, partly offset by higher exploration write-offs. The underlying effective tax rate (ETR)* in the quarter was 34%, compared with 32% for the previous quarter, which reflects changes in the geographical mix of profits.

• Reported profit for the quarter was $3.9 billion, compared with $3.8 billion for the first quarter 2026. The reported result for the second quarter is adjusted for inventory holding losses* of $0.7 billion (net of tax) and a net adverse impact of adjusting items* of $1.1 billion (net of tax) to derive the underlying RC profit. Adjusting items include favourable pre-tax fair value accounting effects* of $1.0 billion and post-tax net impairments of $0.8 billion (see page 28 for more information on adjusting items).

• Operating cash flow for the quarter, after a $1.0 billion working capital* build (after adjusting for inventory holding losses, fair value accounting effects and other adjusting items), was $10.9 billion, around $8.0 billion higher than the previous quarter, reflecting higher earnings and a lower working capital build.

• Net debt* was $22.3 billion at the end of the second quarter compared with $25.3 billion at the end of the first quarter 2026. This reduction reflects strong cash generation during the quarter, after the $2.9 billion (€2.5 billion) perpetual hybrid bond redemption and the payment for $1.1 billion Gulf of America settlement liabilities.

Segment results

• Gas & low carbon energy: The RC profit before interest and tax for the second quarter 2026 was $1.6 billion, compared with $1.1 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.6 billion, the underlying RC profit before interest and tax* for the second quarter was $2.1 billion, compared with $1.3 billion in the first quarter 2026. This primarily reflects higher realizations including the impact of price lags and the changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result was broadly flat compared with the first quarter 2026.

• Oil production & operations: The RC profit before interest and tax for the second quarter 2026 was $3.4 billion, compared with $1.7 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.2 billion, the underlying RC profit before interest and tax for the second quarter was $3.6 billion, compared with $2.0 billion for the first quarter 2026. This reflects higher liquid realizations including the impact of price lags, production mix benefit, and higher income from equity-accounted entities partially offset by higher exploration write-offs mainly due to sale of Bay du Nord in Canada and lower production due to seasonal maintenance in the Gulf of America.

• Customers & products: The RC profit before interest and tax for the second quarter 2026 was $5.1 billion, compared with $2.5 billion for the previous quarter. After adjusting RC profit before interest and tax for a net favourable impact of adjusting items of $0.1 billion, the underlying RC profit before interest and tax (underlying result) for the second quarter was $5.0 billion, compared with $3.2 billion in the first quarter 2026. The customers second quarter underlying result was higher by $0.8 billion, reflecting seasonally higher volumes, higher fuels margins, a stronger Castrol performance and a slightly higher midstream contribution, partly offset by lower contribution from bioenergy. The products second quarter underlying result was higher by $1.0 billion. In refining, the result reflects significantly stronger realized refining margins, partly offset by higher planned turnaround and maintenance activity, as well as the impacts of the third-party event at Whiting in April. The oil trading result was slightly higher compared with the first quarter.

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Source: bp