BP p.l.c.

BP reported underlying profit of $5.7 billion in Q2 2026, up $2.5 billion sequentially, and operating cash flow of $10.9 billion after a $1 billion working-capital build. Group underlying replacement cost profit before interest and tax was $10.3 billion versus $6.3 billion in Q1; IFRS profit was $3.9 billion after around $1.1 billion of adjusting items and around $700 million of inventory holding losses. Upstream production was 2.2 million barrels of oil equivalent per day, 6% lower than Q1, and refining throughput was around 1.5 million barrels per day, 4% lower than Q1. Net debt ended the quarter at $22.3 billion after reducing by around $3.1 billion. Looking ahead, BP expects $2 billion to $3 billion of working capital to unwind over the remainder of the year, full-year capex of $13.5 billion to $14 billion, full-year divestment proceeds of $8 billion to $9 billion, a full-year underlying effective tax rate of around 35% to 40%, and financial obligations of around $39 billion to $41 billion by the end of 2026, which would put the $14 billion to $18 billion net debt target ahead of plan.

Meg O’Neill framed the quarter as evidence of progress, but she was explicit that BP still has structural issues to fix. She said the company needs to strengthen the balance sheet, simplify the portfolio, invest with discipline, improve cost efficiency, and address culture and accountability. Her tone was candid and pragmatic: BP has strong assets and trading capabilities, but she repeatedly said performance has not been consistent enough and that every part of the company must “earn its place.”

Kate Thomson emphasized that stronger earnings and trading drove the quarter, with underlying profit up 78% from Q1 and group underlying RCPBIT at $10.3 billion. She walked through cash generation of $12.9 billion, operating cash flow of $10.9 billion, capex of $3.1 billion, hybrids of $3.1 billion, and dividends of $1.3 billion, leading to net debt of $22.3 billion. She also said BP has delivered $3.5 billion of structural cost reductions since the start of the program, but underlying operating expenditure is not falling quickly enough; she pointed to further supply-chain, organizational, and technology-driven savings. On guidance, she highlighted the $13.5 billion-$14 billion capex range, $8 billion-$9 billion of divestment proceeds, a $35%-$40% tax rate, and the expectation that $2 billion to $3 billion of working capital will unwind in the second half.

This was a prepared-results presentation with no analyst Q&A included in the transcript. The key investor-relevant points management addressed proactively were the quarter’s cash generation, the expected working-capital unwind, the updated capex and divestment guidance, and the path to lowering financial obligations. Management also acknowledged that cost reductions have not yet shown up enough in earnings and cash flow, which was presented as an area needing further action.