BP p.l.c. price-consensus-eps-surprise-chart | BP p.l.c. Quote <\/p>\n
BP’s Profit Mix Benefits From Downstream Strength <\/p>\n
Underlying replacement-cost profit attributable to shareholders increased to $5.73 billion from $2.35 billion in the year-ago quarter. Underlying replacement-cost profit before interest and tax nearly doubled to $10.31 billion from $5.25 billion. <\/p>\n
Customers & Products was the main earnings driver. The segment’s underlying replacement-cost profit before interest and tax reached $4.95 billion, up from $1.53 billion a year earlier. The products business benefited from significantly higher realized refining margins, reduced turnaround activity and a stronger oil-trading contribution. <\/p>\n
BP Realizations Offset Lower Upstream Volumes <\/p>\n
Gas and Low Carbon Energy production declined 2.2% to 765 thousand barrels of oil equivalent per day (Mboe\/d). Its total hydrocarbon realization increased to $52.82 per barrel of oil equivalent from $40.84 per barrel of oil equivalent, supported by higher liquids and natural gas pricing. <\/p>\n
Oil Production and Operations output fell 5.4% to 1,436 Mboe\/d. Total hydrocarbon realizations increased to $62.18 per barrel from $49.03 per barrel. Liquids realizations rose to $84.10 per barrel from $59.74 per barrel, while natural gas realizations declined to $2.16 per thousand cubic feet from $3.66 per thousand cubic feet. <\/p>\n
The segment’s underlying replacement-cost profit before interest and tax rose to $3.58 billion from $2.26 billion. Higher liquids realizations and increased income from equity-accounted entities more than offset lower production and higher exploration write-offs. <\/p>\n
BP’s Refining Margins Drive Products Earnings <\/p>\n
BP’s average refining indicator margin increased sharply to $29.60 per barrel from $11.90 per barrel in the prior-year quarter. Refinery throughput rose 13.9% to 1,467 thousand barrels per day, despite declining from 1,527 thousand barrels per day in the preceding quarter. <\/p>\n
Story Continues <\/p>\n
BP-operated refining availability was 94.7%, down from 96.4% a year ago. Total refined-product sales declined to 3.16 million barrels per day (MMBbl\/d) from 3.20 MMBbl\/d, although trading and supply volumes increased. <\/p>\n
The customers’ business also delivered stronger results, aided by improved fuels and midstream performance and higher Castrol earnings. These positives were partly offset by lower fuels volumes and a reduced contribution from bioenergy. <\/p>\n
BP Cash Flow Supports Debt Reduction <\/p>\n
Operating cash flow increased 73.2% to $10.86 billion, despite a $1.02 billion adjusted working-capital build. Underlying cash generation totaled $12.89 billion during the quarter. <\/p>\n
Capital expenditure declined to $3.09 billion from $3.36 billion. BP also received $609 million in divestment and other proceeds, compared with $1.36 billion in the prior-year period. <\/p>\n
Net debt decreased to $22.25 billion at quarter-end from $26.04 billion a year earlier and $25.31 billion at the end of the first quarter. Total financial obligations and instruments, including net debt, hybrid capital, leases and Gulf of America settlement liabilities, declined by $6.9 billion sequentially. <\/p>\n
BP Raises Dividend <\/p>\n
BP increased its quarterly dividend by 4% to 8.660 cents per ordinary share. The company expects ADS holders to receive 51.96 cents per ADS. <\/p>\n
BP Updates Q3 & 2026 Guidance <\/p>\n
For the third quarter of 2026, BP projects upstream production to be in the range of 2.1-2.25 MMBoe\/d. The outlook incorporates continued Middle East disruptions, lower ownership in Latin America and a potential weather impact of about 40 thousand barrels of oil equivalent per day in the Gulf of America. <\/p>\n
BP expects full-year reported upstream production to be between 2.18 MMBoe\/d and 2.27 MMBoe\/d. Products throughput is forecast in the range of 1.36-1.41 MMBbl\/d. <\/p>\n
The company raised its 2026 capital expenditure outlook to $13.5-$14 billion from the prior $13-$13.5 billion range. Divestment and other proceeds are expected to be between $8 billion and $9 billion, including approximately $6 billion from the planned Castrol transaction. <\/p>\n
BP’s Zacks Rank & Key Picks <\/p>\n
BP currently carries a Zacks Rank #3 (Hold). <\/p>\n
Some better-ranked stocks from the\u00a0energy\u00a0sector are PBF Energy Inc. PBF, HF Sinclair Corporation DINO and Cactus, Inc. WHD. PBF sports a Zacks Rank #1 (Strong Buy), while DINO and WHD carry a Zacks Rank #2 (Buy) each, at present. You can see\u00a0the complete list of today’s Zacks Rank #1 stocks here. <\/p>\n
PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05 per share. <\/p>\n
As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million. <\/p>\n
HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, topping the Zacks Consensus Estimate of $4.39 per share. <\/p>\n
As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion. <\/p>\n
Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents per share. <\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a> <\/p>\n BP p.l.c. (BP) : Free Stock Analysis Report<\/a> <\/p>\n PBF Energy Inc. (PBF) : Free Stock Analysis Report<\/a> <\/p>\n Cactus, Inc. (WHD) : Free Stock Analysis Report<\/a> <\/p>\n HF Sinclair Corporation (DINO) : Free Stock Analysis Report<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n