BP Profit More Than Doubles as Higher Energy Prices Boost Earnings

BP reported a sharp rise in second-quarter profit on Tuesday, driven by higher oil and gas prices, stronger trading performance and improved refining margins, while new Chief Executive Meg O’Neill outlined plans to improve returns and streamline the company’s operations.

BP posted an underlying replacement cost profit of $5.73 billion, more than double the $2.35 billion recorded a year earlier and above analysts’ expectations of $5.11 billion. The company also increased its quarterly dividend by 4% to 8.66 cents per ordinary share.

The strong results come as global energy companies continue to benefit from market volatility following the U.S.-Iran conflict, which disrupted energy supplies and pushed oil and gas prices higher.

BP also announced it has begun the sale process for its U.S. biogas business Archaea, continuing its strategy of scaling back investments in renewable energy to focus on its core oil and gas operations. The company has written down more than $4 billion in recent months, largely related to Archaea, Lightsource BP, and other low-carbon assets.

Since taking over in April, O’Neill has accelerated BP’s restructuring programme, which includes selling its UK North Sea business, its Austrian retail operations and the Gelsenkirchen refinery in Germany. She identified five priorities: strengthening the balance sheet, simplifying the portfolio, tightening capital discipline, improving operational performance and increasing management accountability.

“We are not making the most of our potential,” O’Neill said, adding that BP’s recent performance had failed to meet expectations and that the company had “not delivered consistently.”

Despite the earnings beat, BP said upstream production declined to 2.2 million barrels of oil equivalent per day, while refinery throughput fell because of planned maintenance and disruption linked to the Middle East conflict. Capital expenditure for 2026 is now expected to be $13.5 billion to $14 billion, slightly above previous guidance.

Brent crude averaged about $97 per barrel during the quarter, up from $78 in the previous quarter, while European natural gas prices also climbed, supporting BP’s strongest quarterly net profit since 2022.