BP (BP) Q1 2026 (Q&A) earnings summary

Executive summary

• Delivered strong operational and financial results in Q1 2026, with high plant reliability, record refining throughput in four years, and resilience amid significant external volatility, including Middle East disruptions.

• Underlying net income/replacement cost profit reached $3.2 billion, more than doubling from the previous quarter, and profit attributable to shareholders was $3.8 billion, a sharp turnaround from a loss last quarter.

• Operating cash flow was $8.9 billion before a $6 billion working capital build, with adjusted cash flow up from $6.7 billion in Q4 2025.

• Announced further simplification of the organization, including sale of the Gelsenkirchen refinery and a move to traditional upstream/downstream reporting lines.

• Continued focus on safe, reliable operations, capital discipline, and strengthening the balance sheet.

Financial highlights

• Underlying net income/replacement cost profit was $3.2 billion, more than double the previous quarter.

• Operating cash flow before working capital build was $8.9 billion; net debt increased to $25.3 billion, mainly due to a $6 billion working capital build.

• Revenue for the quarter was $52.3 billion, up from $46.9 billion year-over-year.

• Dividend per ordinary share announced at 8.32 cents.

• Delivered $300 million in structural cost reductions, progressing toward multi-year targets.

Outlook and guidance

• 2Q 2026 upstream production expected to be lower due to seasonal maintenance and Middle East disruptions; refining throughput to decrease due to planned turnarounds.

• Full-year 2026 upstream production guidance lowered due to Middle East effects; CapEx guidance remains $13–$13.5 billion for the year.

• Reserve replacement target set at 100% by 2027.

• Plans to reduce hybrid capital by $4.3 billion by end 2027, with excess cash allocated to balance sheet strengthening.

• Underlying effective tax rate for 2026 expected around 40%, sensitive to price volatility and profit mix.