BP reported a significant increase in underlying replacement cost profit to $8.5 billion for the third quarter 2026, driven by higher realized refining margins and a strong gas marketing and trading performance. The company accelerated its balance sheet strengthening, reducing net debt by $8.4 billion during the quarter. Despite the strong operational performance, the results were tempered by $4.0 billion in post-tax net impairments primarily related to transition businesses within the gas and low carbon energy segment.
Key Highlights
- Underlying RC profit per ADS of $3.26 exceeded the analyst estimate of $2.66, supported by improved macro environments and operational reliability.
- Net debt decreased to $13.9 billion from $22.3 billion in the previous quarter, achieving the management target range ahead of the December strategy update.
- Operating cash flow reached $14.8 billion, a $4.0 billion increase over the prior quarter, reflecting higher underlying earnings and a $0.5 billion working capital release.
- Refining indicator margins surged to $46.7/bbl from $29.6/bbl in the second quarter, while upstream plant reliability improved to 95.3%.