Earnings improve, supported by the macro environment. 3Q 2026 underlying RC profit $8.5 billion, $2.7 billion higher than the prior quarter. Operating cash flow $14.8 billion, including adjusted working capital* release(c) of $0.5 billion
Improved operational performance. 3Q 2026 upstream plant reliability 95.3% (2Q 2026 92.4%); reported production 2.2mmboe/d (2Q 2026 2.2mmboe/d); refining availability 96.5% (2Q 2026 94.7%); refining throughput 1,396mb/d (2Q 2026 1,467mb/d) reflects the divestment of Gelsenkirchen refinery.
Strengthening the balance sheet. Strong cash generation combined with decision to allocate excess cash to strengthen the balance sheet enabled an $8.4 billion reduction in net debt to $13.9 billion.
Strategy and outlook update on 15 December. We will set out the next phase of our plans to build a simpler, stronger and more valuable bp.
Financial summary
$ million | Third quarter 2026 | Second quarter 2026 | Third quarter 2025 | Nine months 2026 | Nine months 2025 |
|---|---|---|---|---|---|
Profit for the period attributable to bp shareholders | 4,696 | 3,911 | 1,161 | 12,449 | 3,477 |
Inventory holding (gains) losses*, net of tax | (1,598) | 717 | 62 | (4,061) | 351 |
Replacement cost (RC) profit* | 3,098 | 4,628 | 1,223 | 8,388 | 3,828 |
Net adverse impact of adjusting items*, net of tax | 5,360 | 1,104 | 987 | 9,000 | 2,116 |
Underlying RC profit* | 8,458 | 5,732 | 2,210 | 17,388 | 5,944 |
Operating cash flow | 14,829 | 10,858 | 7,786 | 28,547 | 16,891 |
Capital expenditure | (3,036) | (3,086) | (3,381) | (9,412) | (10,365) |
Divestment and other proceeds(a) | (21) | 609 | 28 | 836 | 1,712 |
Net debt*(b) | 13,870 | 22,251 | 26,054 | 13,870 | 26,054 |
Underlying operating expenditure* | 5,264 | 5,333 | 5,487 | 15,966 | 16,248 |
Announced dividend per ordinary share (cents per share) | 8.660 | 8.660 | 8.320 | 25.640 | 24.640 |
Underlying RC profit per ordinary share* (cents) | 54.37 | 36.92 | 14.24 | 112.06 | 37.98 |
Underlying RC profit per ADS* (dollars) | 3.26 | 2.22 | 0.85 | 6.72 | 2.28 |
Meg O’Neill, Chief executive officer
“These are dynamic times with volatility and disruption to trade flows continuing to define energy markets.
The industry as a whole has been showing remarkable adaptability. Refineries have been running close to capacity to make up for shortfalls, shipping has been taking different and longer routes, and releases from strategic and commercial reserves are helping to bridge supply gaps.
I’m proud of the contribution bp is making to keep energy flowing. As a global integrated oil and gas company, our connectivity from the reservoir to the fuel pump is a significant source of strength and resilience, particularly given our ability to connect supply with demand.
We maintained upstream production at around 2.2 million barrels per day, upstream plant reliability and refining availability both improved compared to the previous quarter, and our trading performance was also higher.
This has generated a strong set of results, supported by the higher-price, higher-margin environment and some good progress on performance improvement across the business. Our underlying replacement cost profit for the quarter was $8.5 billion and operating cash flow was $14.8 billion, contributing to a reduction of $8.4 billion in net debt.
We have now delivered our net debt and structural cost reductions targets and have line of sight on the remaining two of the four primary financial targets we set ourselves for 2027.
Last week we announced an important step as we agreed with the State of Louisiana to accelerate the delivery of our Deepwater Horizon settlement commitments. Our intent is now to prioritize the use of excess cashflow to address our remaining Deepwater Horizon liabilities in full.
Deepwater Horizon was a tragedy. Eleven men lost their lives, and communities and the environment across the Gulf Coast were impacted. We will never forget - it changed bp. Its legacy guides us in how we operate today, with safety at the heart of everything we do.
And as we move forward, we will continue working with urgency to turn one good set of results into strong performance quarter after quarter. We have much more to do on the five priorities set out at mid-year to deliver a step change in performance and realize the full potential of this company.
Performance improvement priorities
Strengthening the balance sheet: The combined sum of bp’s net debt, hybrids, lease liabilities and Gulf of America settlement liabilities is down by $9.3 billion compared with the second quarter of the year. This is good progress, but we are still too leveraged and further strengthening of the balance sheet remains our number one job. Our goal is a strong balance sheet that, through the cycle, supports the dividend and disciplined investment in service of delivering value to shareholders.
Simplifying the portfolio and investing with discipline: We are moving at speed to simplify bp’s portfolio to assets that best fit our integrated model and deliver the most competitive cash and returns. In the quarter we agreed the sale of our Austrian mobility and convenience business, completed the sale of the Gelsenkirchen refinery, and announced plans to market our North Sea and Archaea businesses. Still to come is the expected imminent closure of the Castrol divestment, unlocking $6 billion to further strengthen the balance sheet.
We have also de-risked exploration and production prospects in Brazil, the Gulf of America and Iraq by bringing in partners. In Venezuela we signed agreements for offshore gas production close to our LNG facilities in Trinidad. We are being rigorous about where we put capital and focusing on the most competitive opportunities. But this quarter we recognized $4.0 billion of impairments linked largely to transition businesses; we know we need to be better stewards of our shareholders' capital.
Driving operational excellence: The culture of ownership the bpx energy team has built in the US over the past three years is showing up in better execution, higher productivity and stronger returns. And in refining this quarter, availability and utilization improved and unit operating costs were down, unlocking greater value from our assets. This improvement needs to be sustained quarter on quarter and replicated across the company.
Hardwiring high performance and accountability: Senior leaders came together last month to hold up the mirror on past performance, challenge ways of working, and make new commitments on clearer accountabilities and better, faster data-based decision-making. We are giving our people clarity on the work they own, what they are expected to deliver and how success will be measured – supported by a much simpler governance and organizational structure that includes the return to upstream and downstream businesses.
Simpler, stronger, more valuable bp
Our goal is to be a resilient business that delivers strong performance in all price environments and grows long-term value for our shareholders. In December we will set out our longer-term plans and capital frame, alongside metrics and targets against which our performance can be judged as we continue to build a simpler, stronger, more valuable bp.
(a) Divestment proceeds are disposal proceeds as per the condensed group cash flow statement. See page 4 for more information.
(b) See Note 9 for more information.
(c) Change in working capital adjusted for inventory holding gains, fair value accounting effects relating to subsidiaries and other adjusting items. See page 27.
RC profit, underlying RC profit, net debt, underlying RC profit per ordinary share, underlying RC profit per ADS and adjusted working capital are non-IFRS measures. Inventory holding (gains) losses and adjusting items are non-IFRS adjustments.
Definitions are provided in the Glossary on page 31. Non-IFRS measures are marked with an asterisk.
3Q 2026 financial results summary
Underlying RC profit* for the quarter was $8.5 billion, compared with $5.7 billion for the previous quarter. Compared with the second quarter 2026, the underlying result mainly reflects significantly higher realized refining margins and significantly higher gas and marketing trading result. The underlying effective tax rate (ETR)* in the quarter was 28%, compared with 34% for the previous quarter, which reflects changes in the geographical mix of profits.
Reported profit for the quarter was $4.7 billion, compared with $3.9 billion for the second quarter 2026. The reported result for the third quarter is adjusted for inventory holding gains* of $1.6 billion (net of tax) and a net adverse impact of adjusting items* of $5.4 billion (net of tax) to derive the underlying RC profit. Adjusting items include adverse pre-tax fair value accounting effects* of $0.5 billion and post-tax net impairments of $4.0 billion (see page 26 for more information on adjusting items).
Operating cash flow for the quarter, after a $0.5 billion working capital* release (after adjusting for inventory holding gains, fair value accounting effects and other adjusting items), was $14.8 billion, around $4.0 billion higher than the previous quarter, reflecting higher underlying earnings, partly offset by $0.9 billion higher income taxes paid.
Net debt* was $13.9 billion at the end of the third quarter compared with $22.3 billion at the end of the second quarter 2026. This reduction reflects stronger cash generation during the quarter, partly offset by $1.0 billion perpetual hybrid securities redemption.
Segment results
Gas & low carbon energy: The RC profit before interest and tax for the third quarter 2026 was $0.2 billion, compared with $1.6 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $3.0 billion, the underlying RC profit before interest and tax* for the third quarter was $3.2 billion, compared with $2.1 billion in the second quarter 2026. This reflects higher realizations which include the impact of changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result was significantly higher than the second quarter 2026.
Oil production & operations: The RC profit before interest and tax for the third quarter 2026 was $3.4 billion, compared with $3.4 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.1 billion, the underlying RC profit before interest and tax for the third quarter was $3.5 billion, compared with $3.6 billion for the second quarter 2026. This reflects lower liquids realizations partly offset by lower exploration write-offs.
Customers & products: The RC profit before interest and tax for the third quarter 2026 was $4.8 billion, compared with $5.1 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $2.2 billion, the underlying RC profit before interest and tax (underlying result) for the third quarter was $6.9 billion, compared with $5.0 billion in the second quarter 2026. The customers third quarter underlying result was lower by $0.5 billion, reflecting weaker fuels margins and a lower result in Castrol and midstream, partly offset by higher volumes due to seasonal effects and lower underlying operating expenditure*. The products third quarter underlying result was higher by $2.5 billion. In refining, the result reflects significantly higher realized refining margins, stronger commercial optimization, lower turnaround and maintenance activity, and the absence of the impact of the prior-quarter third party event at Whiting, partially offset by lower earnings following the Gelsenkirchen divestment. The oil trading result was slightly higher compared with the second quarter.
bp press office, London: bppress@bp.com
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, strategy, four primary and other financial and performance targets, results of operations, cost reduction, cash flows, shareholder returns, governance and organizational structure; plans and expectations regarding the amount and timing of dividends and dividend reinvestment programs; plans and expectations regarding bp’s strategy and outlook update on 15 December 2026, including bp’s longer-term plans, capital frame, performance metrics and targets, and plans to build a simpler, stronger and more valuable bp; plans and expectations regarding bp’s upstream production, including the impact of conditions in the Middle East, bp’s divestment of Culzean gas field and bp’s reduced equity interest in Latin America; plans and expectations regarding the amount, effects, timing, quantum and nature of certain acquisitions, divestments and related payments and proceeds, including expectations regarding the Castrol business, the Austrian mobility & convenience business, Lightsource bp, the North Sea business, the Archaea business and other bp businesses and assets subject to disposal or divestment; plans and expectations regarding bp’s partnerships and joint ventures as well as current and future projects, including BP Energy Company of Kirkuk Limited, Block TTDAA 14 (the Calypso gas project), agreements with the government of Venezuela relating to offshore gas development including Phase 2 of the Loran field, Block 5(b), the Browse project, bp’s bid in the BBG-3 Gulf of America lease sale, the Skarv Satellite Project, the Tupinamba exploration block, the Conifer exploration prospect, the Absheron field and Channel Infrastructure; plans and expectations regarding bp’s net debt, credit rating, hybrid capital, investment strategy, capital expenditures, capital frame, underlying effective tax rate, depreciation, depletion and amortization; plans and expectations regarding bp’s customers business, including with respect to volumes, underlying operating expenditure, earnings growth, cash flows, midstream performance, fuels margins, the impact of base oil costs and conditions in the Middle East, structural cost reduction and the earnings impact of divestments; expectations regarding bp’s products, including underlying performance, refining margins, maintenance activity, and refinery turnaround activity; expectations regarding bp’s income taxes payable, including the impact of higher profits on instalment payments; expectations regarding bp’s other businesses & corporate underlying annual charge; expectations regarding price assumptions used in accounting estimates; and plans and expectations regarding Gulf of America settlement payments, including bp’s agreement to accelerate remaining payments to the State of Louisiana and bp’s intention to prioritize excess cashflow to address other remaining settlement agreement liabilities in full.
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; the conditions and developments in the Middle East; 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 2025 as filed with the US Securities and Exchange Commission.
Cautionary note to U.S. investors - This document contains references to non-proved reserves and production outlooks based on non-proved reserves that the SEC’s rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC’s website at www.sec.gov.