BP (BP) Q2 2026 earnings summary

Executive summary

• Underlying profit rose 78% sequentially to $5.7 billion, driven by higher prices, trading performance, and improved customer results, with Meg O'Neill's first 100 days as CEO emphasizing safety, operational excellence, and shareholder value.

• Five strategic priorities set: strengthening the balance sheet, simplifying the portfolio, disciplined capital investment, operational efficiency, and cultural transformation for accountability and faster decision-making.

• Operating cash flow reached $10.9 billion, supporting a reduction in financial obligations and net debt.

• Dividend per share increased by 4% to 8.66 cents.

• Portfolio optimization underway, including divestment of U.S. renewable natural gas, North Sea assets, and exit from Bay du Nord.

Financial highlights

• Underlying replacement cost profit was $5.7 billion, up from $3.2 billion in Q1, with IFRS profit for the quarter at $3.9 billion after $1.1 billion in net adverse adjusting items.

• Operating cash flow reached $10.9 billion after a $1 billion working capital build; total sources of cash were $13.5 billion.

• Net debt reduced by $3.1 billion to $22.3 billion at quarter-end.

• Capital expenditure for the quarter was $3.1 billion.

• Sales and other operating revenues for Q2 2026 were $69.1 billion, up from $46.6 billion in Q2 2025.

Outlook and guidance

• Full-year 2026 CapEx expected at $13.5–$14 billion, with divestment proceeds of $8–$9 billion, including $6 billion from Castrol transaction.

• Net debt target of $14–$18 billion expected to be achieved ahead of plan by end-2026.

• Underlying effective tax rate updated to 35–40% for the full year.

• Upstream production guidance for FY 2026: 2,180–2,270 mboe/d, reflecting asset sales and Middle East disruptions.

• Customers business expected to see lower results in Q3 2026, with flat volumes and lower midstream and Castrol earnings.