bp has announced second quarter 2025 results.
- Strong operational performance: 2Q25 underlying RC profit $2.4bn; 2Q25 operating cash flow $6.3bn; 2Q25 refining availability* 96.4%; 2Q25 plant reliability* 96.8%
- Enhancing our portfolio and progressing divestments: 5 major project* start-ups and 10 exploration discoveries year-to-date; agreement to sell Netherlands integrated mobility business and US onshore wind business; JERA Nex bp JV formation complete
- Delivering structural cost reductions: $0.9bn 1H25 structural cost reductions*; $1.7bn now delivered against 2023 baseline.
- Growing resilient dividend: 2Q25 dividend per ordinary share of 8.32 cents; in addition, announced $750 million share buyback for 2Q25
| Financial summary | |||||
|---|---|---|---|---|---|
| $ million | Second quarter 2025 | First quarter 2025 | Second quarter 2024 | First half 2025 | First half 2024 |
| Profit (loss) for the period attributable to bp shareholders | 1,629 | 687 | (129) | 2,316 | 2,134 |
| Inventory holding (gains) losses*, net of tax | 407 | (118) | 113 | 289 | (544) |
| Replacement cost (RC) profit (loss)* | 2,036 | 569 | (16) | 2,605 | 1,590 |
| Net (favourable) adverse impact of adjusting items*, net of tax | 317 | 812 | 2,772 | 1,129 | 3,889 |
| Underlying RC profit* | 2,353 | 1,381 | 2,756 | 3,734 | 5,479 |
| Operating cash flow* | 6,271 | 2,834 | 8,100 | 9,105 | 13,109 |
| Capital expenditure* | (3,361) | (3,623) | (3,691) | (6,984) | (7,969) |
| Divestment and other proceeds(b) | 1,356 | 328 | 760 | 1,684 | 1,173 |
| Net issue (repurchase) of shares | (1,063) | (1,847) | (1,751) | (2,910) | (3,501) |
| Net debt*(c) | 26,043 | 26,968 | 22,614 | 26,043 | 22,614 |
| Adjusted EBITDA* | 9,972 | 8,701 | 9,639 | 18,673 | 19,945 |
| Underlying operating expenditure* | 5,457 | 5,304 | 5,441 | 10,761 | 10,952 |
| Announced dividend per ordinary share (cents per share) | 8.320 | 8.000 | 8.000 | 16.320 | 15.270 |
| Underlying RC profit per ordinary share* (cents) | 15.03 | 8.75 | 16.61 | 23.76 | 32.86 |
| Underlying RC profit per ADS* (dollars) | 0.90 | 0.53 | 1.00 | 1.43 | 1.97 |
2Q25 underlying replacement cost (RC) profit* $2.4 billion
- Underlying RC profit for the quarter was $2.4 billion, compared with $1.4 billion for the previous quarter. Compared with the first quarter 2025, the underlying result reflects an average gas marketing and trading result, stronger realized refining margins, stronger customers result, a strong oil trading result, partly offset by lower liquids and gas realizations and significantly higher level of refinery turnaround activity. The underlying effective tax rate (ETR)* in the quarter was 36%, compared with 50% for the previous quarter, which reflects changes in the geographical mix of profits.
- Reported profit for the quarter was $1.6 billion, compared with $0.7 billion for the first quarter 2025. The reported result for the second quarter is adjusted for inventory holding losses* of $0.6 billion (pre-tax) and a net adverse impact of adjusting items* of $0.7 billion (pre-tax) to derive the underlying RC profit. Adjusting items include pre-tax net impairments of $1.1 billion and favourable fair value accounting effects* of $0.6 billion. See page 28 for more information on adjusting items.
Segment results
- Gas & low carbon energy: The RC profit before interest and tax for the second quarter 2025 was $1.0 billion, compared with $1.4 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.4 billion, the underlying RC profit before interest and tax* for the second quarter was $1.5 billion, compared with $1.0 billion in the first quarter 2025. The second quarter underlying result before interest and tax reflects an average gas marketing and trading result compared with a weak result in the first quarter, and higher volumes, partly offset by lower realizations and a higher depreciation, depletion and amortization charge.
- Oil production & operations: The RC profit before interest and tax for the second quarter 2025 was $1.9 billion, compared with $2.8 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.3 billion, the underlying RC profit before interest and tax for the second quarter was $2.3 billion, compared with $2.9 billion in the first quarter 2025. The second quarter underlying result before interest and tax reflects lower realizations and a higher depreciation, depletion and amortization charge partly offset by higher production.
- Customers & products: The RC profit before interest and tax for the second quarter 2025 was $1.0 billion, compared with $0.1 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 (underlying result) for the second quarter was $1.5 billion, compared with $0.7 billion in the first quarter 2025. The customers second quarter underlying result was higher by $0.4 billion, reflecting seasonally higher volumes and stronger fuels margins. The products second quarter underlying result was higher by $0.5 billion, reflecting stronger realized refining margins and a strong oil trading contribution, partly offset by a significantly higher level of refinery turnaround activity.
Operating cash flow $6.3 billion and net debt $26.0 billion
- Operating cash flow of $6.3 billion, which includes the $1.1 billion settlement payment for the Gulf of America (see page 29), was around $3.4 billion higher than the previous quarter, reflecting higher earnings and lower working capital* build. Net debt reduced to $26.0 billion in the second quarter as cash inflows from higher operating cash flow and divestment and other proceeds exceeded cash outflows during the period.
Financial frame
- bp is committed to maintaining a strong balance sheet and maintaining 'A' grade credit range through the cycle. We have a target of $14-18 billion of net debt by the end of 2027(a).
- Our policy is to maintain a resilient dividend. Subject to board approval, we expect an increase in the dividend per ordinary share of at least 4% per year(b). For the second quarter, bp has announced a dividend per ordinary share of 8.32 cents.
- Share buybacks are a mechanism to return excess cash. When added to the resilient dividend, we expect total shareholder distributions of 30-40% of operating cash flow, over time. Related to the second quarter results, bp intends to execute a $0.75 billion share buyback prior to reporting the third quarter results. The $0.75 billion share buyback programme announced with the first quarter results was completed on 1 August 2025.
- bp will continue to invest with discipline, driven by value and focused on delivering returns. We continue to expect capital expenditure to be around $14.5 billion in 2025. The capital frame of around $13-15 billion for 2026 and 2027 remains unchanged.
Murray Auchincloss, chief executive officer, said:
'This has been another strong quarter for bp operationally and strategically. We are delivering on our plan to grow the upstream and focus the downstream with reliability across both at >96%. So far this year we’ve brought five new oil and gas major projects onstream, sanctioned four more and made ten exploration discoveries, including the significant discovery in Bumerangue block in Brazil. Underlying earnings in our customers business are up around 50% compared to a year ago and trading has delivered well quarter-on-quarter during challenging conditions. Expected proceeds from completed or announced divestments have reached around $3 billion for the year and we have now delivered around $1.7 billion of structural cost reductions since the start of our programme. We have announced a dividend per ordinary share of 8.32 cents, an increase of 4%, and a further $750 million share buyback for the second quarter. We remain fully focused on delivering safely and reliably, investing with discipline and driving performance improvement – all in service of growing cash flow, returns and long-term shareholder value.'
Source: bp
