BP's Record Profit May Be Short-Lived Amid Rising Political Risk
BP's second-quarter profit has surged to $5.7 billion, its highest since 2022 and 12% above market expectations. The company attributed this growth largely to the Middle East energy shock. Despite this success, analysts warn that BP may face criticism for profiting from high energy prices.
New CEO Meg O'Neill used her first full-quarter results to outline five priorities, including debt reduction and portfolio reshaping. She announced plans to sell the US biogas business Archaea and market its North Sea operations.
However, BP raised its 2026 capital spending forecast by $500 million to $13.5-14 billion and reduced expected disposal proceeds by $1 billion to $8-9 billion. Plant reliability also fell to 92.4% from 95.7%, leaving operational improvement as a priority.
US President Donald Trump criticized oil companies for making 'too much money' from high energy prices caused by his war on Iran. UK campaign group Global Witness called BP's earnings a 'scandalous reminder' of how oil companies had benefited while energy costs rose.