BP (BP) Q2 2026 earnings summary

Executive summary

• Q2 underlying replacement cost profit rose 78% QoQ to $5.7B from $3.2B, driven by higher realizations, stronger refining margins and trading.

• Operating cash flow was $10.9B after a $1B working-capital build; net debt fell to $22.3B from $25.3B, while financial obligations declined ~$7B.

• Q2 dividend per ordinary share increased 4% to 8.66 cents.

• Priorities include strengthening the balance sheet, simplifying the portfolio, disciplined investment, operational excellence, and greater accountability.

Financial highlights

• Underlying replacement cost profit before interest and tax was $10.3B versus $6.3B in Q1; IFRS profit was $3.9B after $1.1B in net adverse adjusting items.

• Reported operating cash flow was $10.9B; total cash sources were $13.5B, including $12.9B underlying cash generation and ~$600M divestment proceeds.

• Upstream production was 2,201 mboe/d, down 6% QoQ; refinery throughput was 1,467 mb/d, down 4% QoQ.

• Q2 capital expenditure was $3.1B; gearing was 22.6% at June 30, 2026, versus 24.6% a year earlier.

Outlook and guidance

• FY26 capital expenditure guidance is $13.5B-$14B and divestment proceeds are expected at $8B-$9B, including $6B from the Castrol transaction.

• FY26 upstream production guidance is 2,180-2,270 mboe/d, reflecting asset sales and Middle East disruption; Q3 guidance is 2,100-2,250 mboe/d.

• FY26 underlying effective tax rate guidance is 35%-40%; refining indicator margin assumptions were updated after the Gelsenkirchen sale.

• The $14B-$18B net debt target is expected ahead of plan; financial obligations are expected at ~$39B-$41B by year-end 2026, subject to price assumptions.

• A $2B-$3B working-capital unwind is expected over the rest of 2026, subject to macro conditions, prices and Middle East developments.