BP Flags Stronger Q2 Refining and Lower Output on Maintenance and Disruptions

1 month ago 8

Charles Kennedy

Tue, July 14, 2026 astatine 2:35 AM CDT 3 min read

BP said its second-quarter results are expected to payment from importantly stronger lipid realizations and refining margins, adjacent arsenic upstream accumulation falls due to the fact that of seasonal attraction and proviso disruptions successful the Middle East.

In a trading update released up of its Aug. 4 net report, the institution forecast reported upstream accumulation of 2.17 cardinal to 2.22 cardinal barrels of lipid equivalent per time (boe/d), down from 2.339 cardinal boe/d successful the archetypal quarter. The diminution reflects planned maintenance, chiefly successful the Gulf of America, on with the ongoing interaction of disruptions successful the Middle East. Gas and low-carbon vigor accumulation is expected to scope 750,000-770,000 boe/d, portion lipid accumulation and operations are forecast astatine 1.42 million-1.45 cardinal boe/d.

Despite little output, BP expects higher commodity prices to supply a important net boost. Oil accumulation and operations realizations are projected to amended underlying replacement outgo nett earlier involvement and taxation by $1.8 cardinal to $2.1 cardinal compared with the archetypal quarter, portion state and low-carbon vigor realizations are expected to lend an further $500 cardinal to $700 million. Gas selling and trading results are expected to stay broadly unchanged 4th implicit quarter.

The customers and products conception is besides expected to payment from stronger marketplace conditions. BP forecasts seasonally higher substance volumes, improved substance margins, and refining gains of $1.2 cardinal to $1.4 billion. Refinery throughput is expected to diminution to 1.445 million-1.475 cardinal barrels per time owed to planned turnaround enactment and reduced volumes astatine the Whiting refinery pursuing an April third-party incidental that has since been resolved. Oil trading show is expected to beryllium somewhat stronger than successful the archetypal quarter.

The institution expects exploration write-offs of astir $500 cardinal during the quarter, mostly related to the merchantability of its Bay du Nord task successful Canada. Second-quarter results are besides expected to see astir $1 cardinal successful post-tax impairment charges, chiefly linked to modulation businesses wrong its state and low-carbon vigor segment. These charges volition beryllium excluded from underlying replacement outgo profit.

BP forecast nett indebtedness of $22 cardinal to $23 cardinal astatine the extremity of the 2nd quarter, down from $25.3 cardinal astatine the extremity of March. The simplification comes contempt the redemption of €2.5 cardinal successful perpetual hybrid bonds, a $1.1 cardinal Gulf of America colony outgo and a humble moving superior build. Combined nett debt, hybrid capital, and Gulf of America colony liabilities are expected to diminution by $6.3 cardinal to $7.3 cardinal from the erstwhile quarter.

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