BP Q2 Earnings Call Highlights

BP NYSE: BP reported second-quarter underlying replacement cost profit of $5.7 billion, up 78% from the first quarter, as stronger commodity prices, improved refining margins and higher trading performance lifted results. The company also raised its dividend per share by 4% and said financial obligations declined by about $7 billion during the quarter.

Chief Executive Officer Meg O’Neill, who said she had reached her 100th day in the role, framed the results alongside a broader effort to simplify the company, strengthen its balance sheet and improve operating performance. She said bp’s recent performance had not consistently met its own expectations or those of shareholders. “We have not delivered consistently enough across our operations,” O’Neill said. “We have written off too much shareholder value, and we face a challenge of liabilities and costs that means our resilience to a low price environment is insufficient.”

Safety performance remains a central concern O’Neill said safety performance in the first half fell short of bp’s standards. A Castrol employee died following an incident at the Gemlik blending plant in Türkiye in April, and an investigation is underway. The company also recorded more process-safety events in the first half than in the comparable 2025 period, including an increase in Tier 1 events. “Nothing is more important than the safety of our people,” O’Neill said, adding that bp’s goal remains eliminating fatalities, life-changing injuries and Tier 1 process-safety events across its operations.

Operationally, upstream production averaged 2.2 million barrels of oil equivalent per day in the second quarter, down 6% from the first quarter. The decline reflected planned seasonal maintenance, primarily in the U.S. Gulf of Mexico, Middle East supply disruptions, and operational issues in the North Sea and Indonesia. Stronger performance at bpx partly offset those factors. Refining throughput was about 1.5 million barrels per day, down 4% sequentially due mainly to planned turnaround activity and lower refining availability.

Chief Financial Officer Kate Thomson said group underlying replacement cost profit before interest and tax increased to $10.3 billion from $6.3 billion in the first quarter. Higher tax expense associated with stronger earnings contributed to the group’s $5.7 billion underlying replacement cost profit. The gas and low-carbon energy segment’s underlying operating profit increased by about $800 million from the first quarter, supported by higher realizations, including price-lag effects. Oil production and operations profit rose by roughly $1.6 billion, reflecting higher liquids realizations, production mix benefits and higher income from equity-accounted entities. Those gains were partly offset by higher exploration write-offs, mainly related to bp’s exit from Bay du Nord, and lower production from Gulf of Mexico maintenance. Customers and products underlying operating profit increased by approximately $1.8 billion. Thomson cited seasonally higher volumes, higher fuel margins, stronger Castrol results and significantly stronger realized refining margins. Higher planned maintenance activity and the impact of an April third-party event at the Whiting refinery partially offset those gains. BP recorded net adverse adjusting items of about $1.1 billion, including roughly $800 million of post-tax impairments, mainly related to transition businesses in the gas and low-carbon energy segment. After inventory holding losses of about $700 million, IFRS profit for the quarter was $3.9 billion.