BP Announce First quarter 2026 results

28 Apr BP Announce First quarter 2026 results

(Oilandgaspress) -– Reports Strong financial performance: 1Q 2026 underlying RC profit $3.2 billion; operating cash flow $2.9 billion after taking into account a $6.0 billion adjusted working capital* build(c) largely driven by the rising price environment in addition to the seasonal inventory builds.

Strong upstream operations: 1Q 2026 upstream plant reliability improved to 95.7% (4Q25 95.4%); reported production broadly flat as higher production in the Gulf of America and strong performance in bpx Energy offset the impact of disruptions in the Middle East and a North Sea divestment at the end of 2025.

Improved downstream reliability; focused on running assets safely to meet customer demand: refining availability improved to 96.3% (4Q25 96.0%) and above our target of 96% availability.

Continued strategic progress: announced agreement to sell Gelsenkirchen refinery. On transaction completion, our structural cost reduction* target will increase by $1 billion to $6.5-7.5 billion by 2027. Subject to market conditions, we now plan to reduce corporate hybrid bond financing by around $4.3 billion to approximately $9 billion by end 2027.

Meg O’Neill, chief executive officer, commented: “It’s a privilege and an honour to serve as bp’s CEO. I join at a time when our industry is operating in an environment of conflict and complexity, playing a vital role in keeping energy flowing. bp’s team has been working relentlessly to keep our assets producing safely, reliably and efficiently. We are working with customers and governments to get fuel where it’s needed, helping minimize disruption and the impact it can have on people’s lives. Overall, our business continues to run well. This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets. We had high plant reliability, high refining availability and increased production in the Gulf of America and at bpx Energy, our US onshore business – keeping production levels steady despite the ongoing disruption.

We also made progress on sustainability, continuing to embed it in the way we work and building on the 37% reduction in operational emissions last year, compared to our 2019 baseline. We are committed to doing business the right way: providing secure, affordable energy – and doing it sustainably.

bp is a great company, with highly skilled people and world-class assets. We are heading in the right direction, strengthening the balance sheet and continuing to accelerate delivery. Now, we have to capitalize on the opportunity that exists across our portfolio, simplifying how we work, unlocking growth and driving improved returns. That is how we will make bp a simpler, stronger, more valuable company.”

Highlights
1Q26 underlying replacement cost (RC) profit* $3.2 billion
Underlying RC profit for the quarter of $3.2 billion, compared with $1.5 billion for the previous quarter. Compared with the fourth quarter 2025, the underlying result reflects exceptional oil trading contribution and stronger midstream performance. The underlying effective tax rate (ETR)* in the quarter was 32%, compared with 43% for the previous quarter, which reflects changes in the geographical mix of profits.
Reported profit for the quarter was $3.8 billion, compared with a loss of $3.4 billion for the fourth quarter 2025. The reported result for the first quarter is adjusted for inventory holding gains* of $3.2 billion (net of tax) and a net adverse impact of adjusting items* of $2.5 billion (net of tax) to derive the underlying RC profit. Adjusting items include adverse pre-tax fair value accounting effects of $1.1 billion and post-tax net impairments of $0.4 billion (see page 24 for more information on adjusting items).

Segment results
Gas & low carbon energy: The RC profit before interest and tax for the first quarter 2026 was $1.1 billion, compared with a loss of $2.2 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.3 billion, the underlying RC profit before interest and tax* for the first quarter was $1.3 billion, compared with $1.4 billion in the fourth quarter 2025. This reflects realizations remaining broadly flat including the adverse impact of price lags. The gas marketing and trading result was average.

Oil production & operations: The RC profit before interest and tax for the first quarter 2026 was $1.7 billion, compared with $1.7 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.3 billion, the underlying RC profit before interest and tax for the first quarter was $2.0 billion, compared with $2.0 billion for the fourth quarter 2025. This reflects the divestment in the North Sea offset by higher realizations including the adverse impact of the price lags.
Customers & products: The RC profit before interest and tax for the first quarter 2026 was $2.5 billion, compared with $1.4 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.8 billion, the underlying RC profit before interest and tax (underlying result) for the first quarter was $3.2 billion, compared with $1.3 billion in the fourth quarter 2025.

The customers first quarter underlying result was higher by $0.1 billion, reflecting seasonally lower volumes and lower retail fuels margins, more than offset by a stronger midstream performance, including stronger supply optimization across our integrated value chain and one-off timing effects, and a lower underlying operating expenditure. The products first quarter underlying result was higher by $1.7 billion. In refining, the result reflects higher realized refining margins, a higher throughput driven by lower turnaround activity and the recovery following reduced capacity at the Whiting refinery in the fourth quarter, and crude selection timing effects. The oil trading contribution was exceptional.

Operating cash flow $2.9 billion and net debt* $25.3 billion
Operating cash flow for the quarter, after a $6.0 billion working capital* build (after adjusting for inventory holding gains, fair value accounting effects and other adjusting items), was $2.9 billion. The working capital build of $6.0 billion reflects three main factors: around $4.1 billion related to seasonal working capital effects, higher levels of inventory reflecting longer shipping routes and the rising price environment through the quarter; $1.1 billion related to the timing of payments; and $0.8 billion of other items, primarily related to the settlement payments in the Gulf of America.

Net debt increased to $25.3 billion at the end of the first quarter compared with $22.2 billion at the end of the fourth quarter 2025, primarily driven by lower operating cash flow.

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