bp has announced Q3 2026 results - Cash generation accelerates balance sheet strengthening
Key headlines
- Earnings improve, supported by the macro environment. 3Q 2026 underlying RC profit $8.5 billion, $2.7 billion higher than the prior quarter. Operating cash flow $14.8 billion, including adjusted working capital* release(c) of $0.5 billion
- Improved operational performance. 3Q 2026 upstream plant reliability 95.3% (2Q 2026 92.4%); reported production 2.2mmboe/d (2Q 2026 2.2mmboe/d); refining availability 96.5% (2Q 2026 94.7%); refining throughput 1,396mb/d (2Q 2026 1,467mb/d) reflects the divestment of Gelsenkirchen refinery.
- Strengthening the balance sheet. Strong cash generation combined with decision to allocate excess cash to strengthen the balance sheet enabled an $8.4 billion reduction in net debt to $13.9 billion.
- Strategy and outlook update on 15 December. We will set out the next phase of our plans to build a simpler, stronger and more valuable bp.
Meg O’Neill, Chief executive officer
'These are dynamic times with volatility and disruption to trade flows continuing to define energy markets.
The industry as a whole has been showing remarkable adaptability. Refineries have been running close to capacity to make up for shortfalls, shipping has been taking different and longer routes, and releases from strategic and commercial reserves are helping to bridge supply gaps.
I’m proud of the contribution bp is making to keep energy flowing. As a global integrated oil and gas company, our connectivity from the reservoir to the fuel pump is a significant source of strength and resilience, particularly given our ability to connect supply with demand.
We maintained upstream production at around 2.2 million barrels per day, upstream plant reliability and refining availability both improved compared to the previous quarter, and our trading performance was also higher.
This has generated a strong set of results, supported by the higher-price, higher-margin environment and some good progress on performance improvement across the business. Our underlying replacement cost profit for the quarter was $8.5 billion and operating cash flow was $14.8 billion, contributing to a reduction of $8.4 billion in net debt.
We have now delivered our net debt and structural cost reductions targets and have line of sight on the remaining two of the four primary financial targets we set ourselves for 2027.
Last week we announced an important step as we agreed with the State of Louisiana to accelerate the delivery of our Deepwater Horizon settlement commitments. Our intent is now to prioritize the use of excess cashflow to address our remaining Deepwater Horizon liabilities in full.
Deepwater Horizon was a tragedy. Eleven men lost their lives, and communities and the environment across the Gulf Coast were impacted. We will never forget - it changed bp. Its legacy guides us in how we operate today, with safety at the heart of everything we do.
And as we move forward, we will continue working with urgency to turn one good set of results into strong performance quarter after quarter. We have much more to do on the five priorities set out at mid-year to deliver a step change in performance and realize the full potential of this company.'
Performance improvement priorities
Strengthening the balance sheet: The combined sum of bp’s net debt, hybrids, lease liabilities and Gulf of America settlement liabilities is down by $9.3 billion compared with the second quarter of the year. This is good progress, but we are still too leveraged and further strengthening of the balance sheet remains our number one job. Our goal is a strong balance sheet that, through the cycle, supports the dividend and disciplined investment in service of delivering value to shareholders.
Simplifying the portfolio and investing with discipline: We are moving at speed to simplify bp’s portfolio to assets that best fit our integrated model and deliver the most competitive cash and returns. In the quarter we agreed the sale of our Austrian mobility and convenience business, completed the sale of the Gelsenkirchen refinery, and announced plans to market our North Sea and Archaea businesses. Still to come is the expected imminent closure of the Castrol divestment, unlocking $6 billion to further strengthen the balance sheet.
We have also de-risked exploration and production prospects in Brazil, the Gulf of America and Iraq by bringing in partners. In Venezuela we signed agreements for offshore gas production close to our LNG facilities in Trinidad. We are being rigorous about where we put capital and focusing on the most competitive opportunities. But this quarter we recognized $4.0 billion of impairments linked largely to transition businesses; we know we need to be better stewards of our shareholders' capital.
Driving operational excellence: The culture of ownership the bpx energy team has built in the US over the past three years is showing up in better execution, higher productivity and stronger returns. And in refining this quarter, availability and utilization improved and unit operating costs were down, unlocking greater value from our assets. This improvement needs to be sustained quarter on quarter and replicated across the company.
Hardwiring high performance and accountability: Senior leaders came together last month to hold up the mirror on past performance, challenge ways of working, and make new commitments on clearer accountabilities and better, faster data-based decision-making. We are giving our people clarity on the work they own, what they are expected to deliver and how success will be measured – supported by a much simpler governance and organizational structure that includes the return to upstream and downstream businesses.
Simpler, stronger, more valuable bp Our goal is to be a resilient business that delivers strong performance in all price environments and grows long-term value for our shareholders. In December we will set out our longer-term plans and capital frame, alongside metrics and targets against which our performance can be judged as we continue to build a simpler, stronger, more valuable bp.
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Source: bp
