BP reports stronger Q2 2026 financial results as retail and refining margins rise
BP delivered an underlying replacement cost profit of $5.7 billion for the second quarter of 2026, marking a $2.5 billion increase over the previous quarter.
Financial performance and debt reduction
The company recorded an operating cash flow of $10.9 billion for the quarter, after accounting for a $1.0 billion working capital build. Reported profit attributable to shareholders reached $3.9 billion, up slightly from $3.8 billion in the first quarter of 2026. BP also announced a second quarter dividend of 8.66 cents per ordinary share, representing a 4% increase.
Strong quarterly cash flow allowed BP to lower its balance sheet liabilities. Net debt decreased to $22.3 billion at the end of the quarter, down from $25.3 billion in the first quarter. Total net debt, hybrid bonds, leases and Gulf of America settlement liabilities were reduced by $6.9 billion, or more than 11% compared to the previous quarter.
Retail, customers and products segment delivers growth
BP’s customers and products segment recorded an underlying replacement cost profit before interest and tax of $5.0 billion, up from $3.2 billion in the previous quarter.
The customers business gained $0.8 billion over the first quarter. This increase was driven by seasonally higher volumes, stronger fuels margins, higher Castrol performance and a slightly higher midstream contribution, which were partly offset by lower contributions from bioenergy.
The products segment gained $1.0 billion over the previous quarter. Significantly stronger realized refining margins boosted refining results, though higher planned turnaround activity, maintenance work and an event at the Whiting facility in April partially offset these gains. Oil trading results came in slightly higher than in the first quarter.
READ: BP Q1 2026 results
Portfolio changes and operational challenges
BP made several strategic portfolio adjustments during the period. The company completed the sale of its Gelsenkirchen refinery and reached an agreement to sell its Austrian retail business. BP also agreed on terms to bring partners into Kirkuk, launched marketing processes for its UK North Sea business and Archaea Energy, and decided to sell the Bay du Nord project in Canada.
Despite financial gains, operational metrics dropped across upstream and refining operations. Upstream plant reliability reached 92.4%, down from 95.7% in the prior quarter, while reported production declined to 2.2 million barrels of oil equivalent per day. Refining availability fell to 94.7% from 96.3%, with throughput dropping to 1,467 thousand barrels per day.
Leadership commentary and strategic priorities
Meg O'Neill, chief executive officer of BP, reflected on the mixed operational and financial results during her first full quarter leading the company.
"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," O'Neill said. "Through that, BP’s team has stepped up, working tirelessly to keep energy flowing for our customers."
O'Neill highlighted areas where operational performance fell short, noting that plant reliability and production decreased due to planned maintenance and conflict in the Middle East. She outlined five core priorities to improve performance: strengthening the balance sheet, simplifying the portfolio, investing with greater discipline, driving operational excellence and hardwiring high performance into the organization.
"We have to get fit to grow," O'Neill stated. "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."
