Second quarter 2025 results

Highlights 

2Q25 underlying replacement cost (RC) profit* $2.4 billion

• Underlying RC profit for the quarter was $2.4 billion, compared with $1.4 billion for the previous quarter. Compared with the first quarter 2025, the underlying result reflects an average gas marketing and trading result, stronger realized refining margins, stronger customers result, a strong oil trading result, partly offset by lower liquids and gas realizations and significantly higher level of refinery turnaround activity. The underlying effective tax rate (ETR)* in the quarter was 36%, compared with 50% for the previous quarter, which reflects changes in the geographical mix of profits.
• Reported profit for the quarter was $1.6 billion, compared with $0.7 billion for the first quarter 2025. The reported result for the second quarter is adjusted for inventory holding losses* of $0.6 billion (pre-tax) and a net adverse impact of adjusting items* of $0.7 billion (pre-tax) to derive the underlying RC profit. Adjusting items include pre-tax net impairments of $1.1 billion and favourable fair value accounting effects* of $0.6 billion. See page 28 for more information on adjusting items.
  

Segment results

• Gas & low carbon energy: The RC profit before interest and tax for the second quarter 2025 was $1.0 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 $0.4 billion, the underlying RC profit before interest and tax* for the second quarter was $1.5 billion, compared with $1.0 billion in the first quarter 2025. The second quarter underlying result before interest and tax reflects an average gas marketing and trading result compared with a weak result in the first quarter, and higher volumes, partly offset by lower realizations and a higher depreciation, depletion and amortization charge.
• Oil production & operations: The RC profit before interest and tax for the second quarter 2025 was $1.9 billion, compared with $2.8 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 second quarter was $2.3 billion, compared with $2.9 billion in the first quarter 2025. The second quarter underlying result before interest and tax reflects lower realizations and a higher depreciation, depletion and amortization charge partly offset by higher production.
• Customers & products: The RC profit before interest and tax for the second quarter 2025 was $1.0 billion, compared with $0.1 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.6 billion, the underlying RC profit before interest and tax (underlying result) for the second quarter was $1.5 billion, compared with $0.7 billion in the first quarter 2025. The customers second quarter underlying result was higher by $0.4 billion, reflecting seasonally higher volumes and stronger fuels margins. The products second quarter underlying result was higher by $0.5 billion, reflecting stronger realized refining margins and a strong oil trading contribution, partly offset by a significantly higher level of refinery turnaround activity. 

Operating cash flow $6.3 billion and net debt $26.0 billion

• Operating cash flow of $6.3 billion, which includes the $1.1 billion settlement payment for the Gulf of America (see page 29), was around $3.4 billion higher than the previous quarter, reflecting higher earnings and lower working capital* build. Net debt reduced to $26.0 billion in the second quarter as cash inflows from higher operating cash flow and divestment and other proceeds exceeded cash outflows during the period.

Financial frame

• bp is committed to maintaining a strong balance sheet and maintaining 'A' grade credit range through the cycle. We have a target of $14-18 billion of net debt by the end of 2027(a). 
• Our policy is to maintain a resilient dividend. Subject to board approval, we expect an increase in the dividend per ordinary share of at least 4% per year(b). For the second quarter, bp has announced a dividend per ordinary share of 8.32 cents.
• Share buybacks are a mechanism to return excess cash. When added to the resilient dividend, we expect total shareholder distributions of 30-40% of operating cash flow, over time. Related to the second quarter results, bp intends to execute a $0.75 billion share buyback prior to reporting the third quarter results. The $0.75 billion share buyback programme announced with the first quarter results was completed on 1 August 2025. 
• bp will continue to invest with discipline, driven by value and focused on delivering returns. We continue to expect capital expenditure to be around $14.5 billion in 2025. The capital frame of around $13-15 billion for 2026 and 2027 remains unchanged.

(a) This results announcement also represents bp's half-yearly financial report (see page 14).
(b) Divestment proceeds are disposal proceeds as per the condensed group cash flow statement. See page 3 for more information on other proceeds.
(c) See Note 9 for more information.

RC profit (loss), underlying RC profit, net debt, adjusted EBITDA, underlying operating expenditure, underlying RC profit per ordinary share and underlying RC profit per ADS are non-IFRS measures. Inventory holding (gains) losses and adjusting items are non-IFRS adjustments.

* For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 35. 

Further information

Contacts

bp press office, London: +44 20 7496 4076, bppress@bp.com

Cautionary statement

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement:

The discussion in this announcement contains certain forecasts, projections and forward-looking statements - that is, statements related to future, not past events and circumstances - with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’, ‘focus on’ or similar expressions.

In particular, the following, among other statements, are all forward-looking in nature: plans, expectations and assumptions regarding oil and gas demand, supply, prices or volatility; expectations regarding production and volumes; expectations regarding turnaround and maintenance activity; plans and expectations regarding bp’s balance sheet, financial performance, results of operations, cost reduction, cash flows, and shareholder returns; plans and expectations regarding the amount and timing of dividends, share buybacks, and dividend reinvestment programs; plans and expectations regarding bp’s upstream production; plans and expectations regarding the amount, timing, quantum and nature of certain acquisitions, divestments and related payments; plans and expectations regarding bp’s net debt , investment strategy, capital expenditures, capital frame, underlying effective tax rate, and depreciation, depletion and amortization; plans and expectations regarding Albert Manifold joining bp’s board and related timing; plans and expectations regarding a review of bp’s portfolio of businesses and a further cost review including the outcomes of those reviews; expectations regarding bp’s tax liabilities and future impact of German tax legislation on bp’s results of operations, financial position and tax obligations; expectations regarding bp’s customers business, including with respect to volumes and fuel margins; expectations regarding bp’s products, including underlying performance, refinery turnaround activity, refining margins and operations; expectations regarding bp’s other businesses & corporate underlying annual charge; expectations regarding Gulf of America settlement payments; expectations regarding improvements associated with bp’s transition to a refining indicator margin (RIM) and the associated refining rule of thumb (RoT); expectations regarding TPAO’s participation in the Shafag-Asiman production-sharing agreement; expectations regarding bp’s low carbon energy business, including the JERA Nex bp offshore wind joint venture, bp’s plans to sell its US onshore wind business and timing of completion, and bp’s plans to exit the Australian Renewable Energy Hub project; expectations regarding the Agogo Integrated West Hub Project; expectations regarding the Gajajeira-01 exploration well, including initial assessments of the gas volumes in place; plans and expectations in relation to the discovery in the Bumerangue block including the outcome of laboratory testing of hydrocarbon samples and the potential of the discovery; expectations regarding bp’s investment in the Atlantis Major Facility Expansion Project; expectations regarding bp’s plans to sell its Netherlands mobility & convenience and bp pulse businesses, including timing of completion of the divestment; expectations regarding bp’s plans to sell its mobility and convenience business in Austria, including timing of the divestment; expectations regarding sale of certain assets of Lightsource bp, including timing of completion of the sale; and expectations regarding the principal risks and uncertainties affecting bp.

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp. Recent global developments have caused significant uncertainty and volatility in macroeconomic conditions and commodity markets. Each item of outlook and guidance set out in this announcement is based on bp’s current expectations but actual outcomes and results may be impacted by these evolving macroeconomic and market conditions.

Actual results or outcomes may differ materially from those expressed in such statements, depending on a variety of factors, including: the extent and duration of the impact of current market conditions including the volatility of oil prices, the effects of bp’s plan to exit its shareholding in Rosneft and other investments in Russia, overall global economic and business conditions impacting bp’s business and demand for bp’s products as well as the specific factors identified in the discussions accompanying such forward-looking statements; changes in consumer preferences and societal expectations; the pace of development and adoption of alternative energy solutions; developments in policy, law, regulation, technology and markets, including societal and investor sentiment related to the issue of climate change; the receipt of relevant third party and/or regulatory approvals including ongoing approvals required for the continued developments of approved projects; the timing and level of maintenance and/or turnaround activity; the timing and volume of refinery additions and outages; the timing of bringing new fields onstream; the timing, quantum and nature of certain acquisitions and divestments; future levels of industry product supply, demand and pricing, including supply growth in North America and continued base oil and additive supply shortages; OPEC+ quota restrictions; PSA and TSC effects; operational and safety problems; potential lapses in product quality; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations and policies, including related to climate change; changes in social attitudes and customer preferences; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought or imposed; the actions of prosecutors, regulatory authorities and courts; delays in the processes for resolving claims; amounts ultimately payable and timing of payments relating to the Gulf of America oil spill; exchange rate fluctuations; development and use of new technology; recruitment and retention of a skilled workforce; the success or otherwise of partnering; the actions of competitors, trading partners, contractors, subcontractors, creditors, rating agencies and others; bp’s access to future credit resources; business disruption and crisis management; the impact on bp’s reputation of ethical misconduct and non-compliance with regulatory obligations; trading losses; major uninsured losses; the possibility that international sanctions or other steps taken by governmental authorities or any other relevant persons may impact bp’s ability to sell its interests in Rosneft, or the price for which bp could sell such interests; the actions of contractors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks or sabotage; and those factors discussed under “Risk factors” in bp’s Annual Report and Form 20-F for fiscal year 2024 as filed with the US Securities and Exchange Commission.