BP Profit Soars to $5.7 Billion Amid Political Risk

BP's second-quarter profit surged to $5.7 billion, its highest since 2022, as CEO Meg O'Neill outlined her priorities for the company. The profit more than doubled year-on-year and exceeded City consensus by 12%, with cash flow before working capital movements reaching $11.9 billion, beating forecasts by 32%. Net debt fell from $25.3 billion to $22.3 billion, and BP now expects to reach its target of $14-18 billion in debt reduction by the end of 2026, one year earlier than planned.

O'Neill's first full-quarter results highlighted five priorities: balance sheet, portfolio, investment discipline, operations, and accountability. The company is selling its US biogas business Archaea and has begun marketing its North Sea operations, demonstrating O'Neill's commitment to reshaping the portfolio.

However, complications arise from BP's decision to raise its 2026 capital spending forecast by $500 million to $13.5-14 billion, while reducing expected disposal proceeds by $1 billion to $8-9 billion. Plant reliability also fell to 92.4% from 95.7%, emphasizing the need for operational improvement.

The profit surge brings political risk, with US President Donald Trump criticizing oil companies for 'making too much money' from high energy prices caused by his war on Iran. UK campaign group Global Witness described BP's earnings as a 'scandalous reminder' of how oil companies have benefited while energy costs rose.