BP Plc Q2 RC Profit More-than Doubles, Production Down; Backs Weak Production View For FY26

(RTTNews) - British oil and gas major BP Plc (BP, BP.L) reported Tuesday higher replacement cost or RC profit in its second quarter with increased sales, despite weak production. Further, BP continues to expect weak upstream production for fiscal 2026.

BP also announced it is launching a process to market Archaea Energy for a potential sale.

Further, the company raised its interim dividend by 4 percent to 8.660 cents per ordinary share, payable on September 18 to shareholders and American Depositary Share holders on the register on August 14.

In the second quarter, RC profit reached $4.628 billion, higher than $2.036 billion in the comparable period. Underlying RC profit was $5.732 billion, compared with $2.353 billion a year ago.

Underlying RC profit per ordinary share rose to 36.92 cents from 15.03 cents last year, while underlying RC profit per ADS increased to $2.22 from $0.90 a year ago. The improvement mainly reflected significantly higher realized refining margins and higher liquid realizations, reflecting the strength of BP's integrated operational model.

Profit before taxation reached $7.821 billion versus $2.883 billion a year ago, while profit for the period attributable to BP shareholders totaled $3.911 billion, compared with prior year's $1.629 billion. Earnings per ADS increased to $1.47 from $0.62 a year earlier.

Total revenues and other income were $70.114 billion against $47.677 billion last year, with sales and other operating revenues were at $69.105 billion versus $46.627 billion in the prior year.

Reported production for the quarter was 765 mboe/d, 2.1 percent lower than the same period in 2025. Underlying production declined 2.2 percent mainly due to base decline, partly offset by ramp-up of major projects.

Looking ahead for the third quarter 2026, the company expects reported upstream production between 2,100 and 2,250 mboe/d, compared with 2,201 mboe/d in second quarter 2026.

For full-year 2026, BP now expects reported upstream production between 2,180 and 2,270 mboe/d versus 2,312 mboe/d in 2025. This includes disruption in the Middle East, the divestment of the Culzean gas field in the UK North Sea, BP's reduced equity interest in Latin America, and an estimated 15 mboe/d impact for potential seasonal weather events in the Gulf of America.

Heightened volatility in oil and gas prices could also impact production-sharing agreement contracts.

Underlying upstream production is still expected to be broadly flat compared with 2025, with oil production and operations broadly flat and gas and low carbon energy production lower.

In the overnight trading on the NYSE, BP shares were gaining around 1.36 percent, trading at $44.86.

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