Stronger financial performance: 2Q 2026 underlying RC profit $5.7 billion, $2.5 billion higher than the prior quarter reflecting the strength of bp’s integrated operational model; operating cash flow $10.9 billion after taking into account a $1.0 billion adjusted working capital* build(C).
Operating performance: 2Q 2026 upstream plant reliability 92.4% (1Q 2026 95.7%); reported production 2.2mmboe/d (1Q 2026 2.3mmboe/d); refining availability 94.7% (1Q 2026 96.3%); refining throughput 1,467mb/d (1Q 2026 1,527mb/d).
Strategic progress on portfolio and balance sheet: Reached an agreement to sell Austrian retail business; agreed terms to bring partners into Kirkuk; completed the sale of Gelsenkirchen refinery, launched processes to market our North Sea business and Archaea Energy; the total of net debt, hybrid bonds and securities, leases and Gulf of America settlement liabilities reduced by $6.9 billion.
Shareholder returns: 2Q 2026 dividend per ordinary share of 8.66 cents, 4% increase.
Financial summary
$ million | Second quarter 2026 | First quarter 2026 | Second quarter 2025 | First half 2026 | First half 2025 |
Profit for the period attributable to bp shareholders | 3,911 | 3,842 | 1,629 | 7,753 | 2,316 |
Inventory holding (gains) losses*, net of tax | 717 | (3,180) | 407 | (2,463) | 289 |
Replacement cost (RC) profit* | 4,628 | 662 | 2,036 | 5,290 | 2,605 |
Net adverse impact of adjusting items*, net of tax | 1,104 | 2,536 | 317 | 3,640 | 1,129 |
Underlying RC profit* | 5,732 | 3,198 | 2,353 | 8,930 | 3,734 |
Operating cash flow | 10,858 | 2,860 | 6,271 | 13,718 | 9,105 |
Capital expenditure | (3,086) | (3,290) | (3,361) | (6,376) | (6,984) |
Divestment and other proceeds(a) | 609 | 248 | 1,356 | 857 | 1,684 |
Net debt*(b) | 22,251 | 25,309 | 26,043 | 22,251 | 26,043 |
Underlying operating expenditure* | 5,333 | 5,369 | 5,457 | 10,702 | 10,761 |
Announced dividend per ordinary share (cents per share) | 8.660 | 8.320 | 8.320 | 16.980 | 16.320 |
Underlying RC profit per ordinary share* (cents) | 36.92 | 20.67 | 15.03 | 57.62 | 23.76 |
Underlying RC profit per ADS* (dollars) | 2.22 | 1.24 | 0.90 | 3.46 | 1.43 |
Meg O’Neill, Chief executive officer
“This is my first full quarter at bp, and it has been marked by one of the most disrupted periods in the global energy market. Through that, bp’s team has stepped up, working tirelessly to keep energy flowing for our customers.
Financially, we delivered a strong quarter, with an underlying replacement cost profit of $5.7 billion ($2.5 billion higher than last quarter) and an operating cash flow of $10.9 billion, after a working capital build of $1.0 billion.
We made good progress strengthening bp’s balance sheet. We also took steps to simplify and strengthen bp. In recent weeks, we sold our Gelsenkirchen refinery, agreed to sell our retail business in Austria and announced our intention to sell our North Sea business in the UK. Today, we are announcing our intention to sell Archaea, our biogas business in the US.
But there are areas where our performance fell short. Operationally, our plants didn’t run as well as they did last quarter – upstream plant reliability was 92.4%, compared to 95.7%, and production was down and our refineries processed less crude. This was due, in part, to planned maintenance and the conflict in the Middle East, but this is a reminder that we have more to do to deliver consistent operational performance.
Where we must improve
Since I joined bp, I have spent time with bp’s teams on the frontline and met investors, business partners, governments and other key stakeholders. In four months, I’ve seen enough to know this company can be extraordinary – from our high-quality assets to our integrated model, deep capabilities, strong partnerships and exceptional people.
However, we are not making the most of our potential. Our performance over the past few years has not met our own expectations, let alone those of our shareholders. We have not delivered consistently; we have written off too much value; and our costs and liabilities are not resilient enough in a low price environment.
My job is to help make bp the best we can be. We need to take a clear look at ourselves: assessing what needs to change, stopping what holds us back and building strength where it matters. We have to get fit to grow. To do so, I am laying out five priorities to deliver a step change in performance and grow shareholder value.
Priorities to deliver a step change in performance
Strengthening the balance sheet. This quarter we reduced the total of net debt, hybrids, leases and Gulf of America settlement liabilities by more than 11% compared to last quarter. That is still not enough – we need to do more. Financial resilience gives us greater flexibility to invest to grow through the cycle and reward our shareholders.
Simplifying the portfolio based on value, not sentiment nor history. We have to focus on the assets with the strongest potential to deliver competitive returns and long-term value – just as we have done with our decisions on the North Sea and Archaea.
Investing with greater discipline to ensure every dollar of capital competes. Our decision to sell Bay du Nord and free up the capital shows that discipline in action. We must keep challenging ourselves, using our balanced investment criteria to make decisions rooted in profitability, cash generation and market realities. I am very clear on this, we need to compete in the weight class we are in.
Driving operational excellence. We need to run our assets safely, reliably and with greater cost efficiency. We have made progress on reducing structural costs, but we have not improved enough where it matters most: the bottom line. We need to move faster, and we have both the opportunity and the technology to do this. Operational excellence is also about working safely with people, communities and the environment; it helps us work to deliver energy that is secure, affordable and lower-carbon, where it makes business sense – and it is how we will make bp more competitive.
Hardwiring high-performance and accountability into bp. We must make better, faster decisions, reduce complexity and sharpen accountability. Last month, we moved to an Upstream and Downstream organization, supported by our world-class trading business. This integrated model is a competitive advantage and an important first step.(d)
Looking ahead
We will be transparent about how we progress – and judge ourselves by our results. I want the organization focused on execution: deliver what we said, faster and with greater intensity. In three words: focus, perform, grow.
We know what we need to do, we are taking urgent action and I am confident that this is how we will grow long-term value for shareholders."
(a) Divestment proceeds are disposal proceeds as per the condensed group cash flow statement.
(b) See Note 9 for more information.
(c) Change in working capital adjusted for inventory holding gains, fair value accounting effects relating to subsidiaries and other adjusting items. See page 29.
(d) Reportable segments for external financial reporting will remain unchanged until 31 December 2026 as the financial reporting aspects of the new segment model will take time to implement.
RC profit (loss), underlying RC profit, net debt, underlying RC profit per ordinary share, underlying RC profit per ADS and adjusted working capital are non-IFRS measures. Inventory holding (gains) losses and adjusting items are non-IFRS adjustments.
Definitions are provided in the Glossary on page 34. Non-IFRS measures are marked with an asterisk.
2Q 2026 financial results summary
Underlying RC profit* for the quarter was $5.7 billion, compared with $3.2 billion for the previous quarter. Compared with the first quarter 2026, the underlying result mainly reflects higher liquids and gas realizations including the impact of price lags, stronger realized refining margins and stronger customers result, partly offset by higher exploration write-offs. The underlying effective tax rate (ETR)* in the quarter was 34%, compared with 32% for the previous quarter, which reflects changes in the geographical mix of profits.
Reported profit for the quarter was $3.9 billion, compared with $3.8 billion for the first quarter 2026. The reported result for the second quarter is adjusted for inventory holding losses* of $0.7 billion (net of tax) and a net adverse impact of adjusting items* of $1.1 billion (net of tax) to derive the underlying RC profit. Adjusting items include favourable pre-tax fair value accounting effects* of $1.0 billion and post-tax net impairments of $0.8 billion (see page 28 for more information on adjusting items).
Operating cash flow for the quarter, after a $1.0 billion working capital* build (after adjusting for inventory holding losses, fair value accounting effects and other adjusting items), was $10.9 billion, around $8.0 billion higher than the previous quarter, reflecting higher earnings and a lower working capital build.
Net debt* was $22.3 billion at the end of the second quarter compared with $25.3 billion at the end of the first quarter 2026. This reduction reflects strong cash generation during the quarter, after the $2.9 billion (€2.5 billion) perpetual hybrid bond redemption and the payment for $1.1 billion Gulf of America settlement liabilities.
Segment results
Gas & low carbon energy: The RC profit before interest and tax for the second quarter 2026 was $1.6 billion, compared with $1.1 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* for the second quarter was $2.1 billion, compared with $1.3 billion in the first quarter 2026. This primarily reflects higher realizations including the impact of price lags and the changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result was broadly flat compared with the first quarter 2026.
Oil production & operations: The RC profit before interest and tax for the second quarter 2026 was $3.4 billion, compared with $1.7 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.2 billion, the underlying RC profit before interest and tax for the second quarter was $3.6 billion, compared with $2.0 billion for the first quarter 2026. This reflects higher liquid realizations including the impact of price lags, production mix benefit, and higher income from equity-accounted entities partially offset by higher exploration write-offs mainly due to sale of Bay du Nord in Canada and lower production due to seasonal maintenance in the Gulf of America.
Customers & products: The RC profit before interest and tax for the second quarter 2026 was $5.1 billion, compared with $2.5 billion for the previous quarter. After adjusting RC profit before interest and tax for a net favourable impact of adjusting items of $0.1 billion, the underlying RC profit before interest and tax (underlying result) for the second quarter was $5.0 billion, compared with $3.2 billion in the first quarter 2026. The customers second quarter underlying result was higher by $0.8 billion, reflecting seasonally higher volumes, higher fuels margins, a stronger Castrol performance and a slightly higher midstream contribution, partly offset by lower contribution from bioenergy. The products second quarter underlying result was higher by $1.0 billion. In refining, the result reflects significantly stronger realized refining margins, partly offset by higher planned turnaround and maintenance activity, as well as the impacts of the third-party event at Whiting in April. The oil trading result was slightly higher compared with the first quarter.
bp press office, London: bppress@bp.com
In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement:
The discussion in this announcement contains certain forecasts, projections and forward-looking statements - that is, statements related to future, not past events and circumstances - with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’, ‘focus on’ or similar expressions.
In particular, the following, among other statements, are all forward-looking in nature: plans, expectations and assumptions regarding oil and gas demand, supply, prices or volatility; expectations regarding production and volumes; expectations regarding turnaround and maintenance activity; plans and expectations regarding bp’s balance sheet, financial performance, results of operations, cost reduction, cash flows, and shareholder returns; plans and expectations regarding the amount and timing of dividends, share buybacks, dividend reinvestment programs and the use of excess cash; plans and expectations regarding bp’s upstream production; plans and expectations regarding the amount, effects, timing, quantum and nature of certain acquisitions, divestments and related payments and proceeds, including expectations regarding the Castrol business, the offshore exploration blocks in Namibia, the Austrian mobility & convenience and bp pulse businesses, Lightsource bp, the North Sea business, the Bay Du Nord project, the Archaea business and other bp businesses and assets subject to disposal or divestment; plans and expectations regarding the closing of bp Ventures; plans and expectations regarding the Bab Gas Cap project, the Thunder Horse Major Project, the Greater PAJ Project, and the Atlantis Major Facility Expansion project; plans and expectations regarding bp’s net debt, credit rating, hybrid capital (including with respect to the redemption, without replacement, of hybrid bonds), investment strategy, capital expenditures, underlying effective tax rate, depreciation, depletion and amortization and the impact of the Gelsenkirchen divestment on the bp refining indicator margin and associated refining rule of thumb; expectations regarding bp’s customers business, including with respect to volumes, underlying operating expenditure, earnings growth, midstream performance, fuels margins, the impact of base oil costs and conditions in the Middle East, structural cost reduction and the earnings impact of divestments; expectations regarding bp’s products, including underlying performance, refining margins, and refinery turnaround activity; expectations regarding bp’s income taxes payable, including the timing of instalment payments; expectations regarding bp’s other businesses & corporate underlying annual charge; and expectations regarding Gulf of America settlement payments.
By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp. Recent global developments have caused significant uncertainty and volatility in macroeconomic conditions and commodity markets. Each item of outlook and guidance set out in this announcement is based on bp’s current expectations but actual outcomes and results may be impacted by these evolving macroeconomic and market conditions.
Actual results or outcomes may differ materially from those expressed in such statements, depending on a variety of factors, including: the extent and duration of the impact of current market conditions including the volatility of oil prices, the effects of bp’s plan to exit its shareholding in Rosneft and other investments in Russia, overall global economic and business conditions impacting bp’s business and demand for bp’s products as well as the specific factors identified in the discussions accompanying such forward-looking statements; changes in consumer preferences and societal expectations; the pace of development and adoption of alternative energy solutions; developments in policy, law, regulation, technology and markets, including societal and investor sentiment related to the issue of climate change; the receipt of relevant third party and/or regulatory approvals including ongoing approvals required for the continued developments of approved projects; the timing and level of maintenance and/or turnaround activity; the timing and volume of refinery additions and outages; the timing of bringing new fields onstream; the timing, quantum and nature of certain acquisitions and divestments; future levels of industry product supply, demand and pricing, including supply growth in North America and continued base oil and additive supply shortages; OPEC+ quota restrictions; PSA and TSC effects; operational and safety problems; potential lapses in product quality; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations and policies, including related to climate change; changes in social attitudes and customer preferences; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought or imposed; the actions of prosecutors, regulatory authorities and courts; delays in the processes for resolving claims; amounts ultimately payable and timing of payments relating to the Gulf of America oil spill; the conditions and developments in the Middle East; exchange rate fluctuations; development and use of new technology; recruitment and retention of a skilled workforce; the success or otherwise of partnering; the actions of competitors, trading partners, contractors, subcontractors, creditors, rating agencies and others; bp’s access to future credit resources; business disruption and crisis management; the impact on bp’s reputation of ethical misconduct and non-compliance with regulatory obligations; trading losses; major uninsured losses; the possibility that international sanctions or other steps taken by governmental authorities or any other relevant persons may impact bp’s ability to sell its interests in Rosneft, or the price for which bp could sell such interests; the actions of contractors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks or sabotage; and those factors discussed under “Risk factors” in bp’s Annual Report and Form 20-F for fiscal year 2025 as filed with the US Securities and Exchange Commission.
Cautionary note to U.S. investors - This document contains references to non-proved reserves and production outlooks based on non-proved reserves that the SEC’s rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC’s website at www.sec.gov.