BP’s underlying profit reaches $8.46 billion in the third quarter, beating expectations
Key Facts
BP reported underlying replacement cost profit of $8.46 billion in the third quarter of 2026, the highest quarterly level under the current version of this measure, according to Reuters. The figure was above analyst expectations of $7.33 billion, compared with profit of $2.2 billion in the same period last year. Profit attributable to the company’s shareholders was $4.7 billion, versus $1.2 billion a year earlier, according to Reuters. Underlying replacement cost profit differs from profit attributable to shareholders, as each presents a different measure of the company’s results. Chief Executive Meg O’Neill said the strong results were "supported by a higher price and margin environment, and some good progress in improving performance across the business."
Improved refining margins were among the factors accompanying the rise in profit, with BP’s refining marker reaching $46.7 per barrel in the third quarter. The marker stood at $29.6 per barrel in the second quarter and was $15.8 a year earlier, according to Reuters. The comparison shows the marker rising both quarter on quarter and year on year during the period in which the company reported record profit under its current measure. O’Neill also attributed the strong results to the price and margin environment and progress in improving performance across the business. The available facts did not provide a documented breakdown of profit from the customers and products business, so the reported refining marker remains the main operating figure available for comparison here.
Operating cash flow reached $14.8 billion in the third quarter, after a $0.5 billion release of working capital, according to Reuters. Cash flow increased by about $4.0 billion from the previous quarter, adding an indication of cash generated from operations during the period to the strong results. BP said it would use excess cash flow to address in full its remaining obligations related to the Deepwater Horizon disaster. The company said remaining payments and provisions related to the spill totaled $5.94 billion in its latest data as of October 30. O’Neill said BP still carried more debt than it could sustain in a lower-price scenario, pointing to management’s continued focus on financial obligations.
On operations, oil and gas production was about 2.2 million barrels of oil equivalent per day in the third quarter, according to Reuters. O’Neill said upstream facility reliability and refinery availability improved compared with the previous quarter. By segment, underlying profit at the gas and low-carbon energy business rose to $3.2 billion from $2.1 billion in the second quarter. By contrast, underlying profit from oil production operations fell to $3.5 billion from $3.6 billion in the previous period. These figures show divergent quarter-on-quarter movements between the two segments, alongside reported production that was broadly steady at about 2.2 million barrels of oil equivalent per day.
BP expects a much lower result from its customers business in the fourth quarter, with seasonal declines in volumes and lower results from oil trading and Castrol profit, according to Reuters, citing the company. It also forecast reported upstream production of between 2.09 and 2.23 million barrels of oil equivalent per day over the same period. The forecasts point to a weaker outlook for the customers business alongside a defined production range for the coming quarter. On its obligations, the company said excess cash flow would be directed toward addressing in full its remaining Deepwater Horizon liabilities. Payments and provisions related to the spill remain at $5.94 billion, according to BP’s latest figures in its October 30 report.
BP is scheduled to present an update on its strategy and long-term outlook on December 15, 2026, covering its plans, capital framework, performance measures and targets. The date follows the company’s fourth-quarter forecast and its statement that excess cash flow would be used to address the spill-related obligations. In trading on October 30, BP shares rose 0.5% at around 10:13 GMT, outperforming a 0.2% decline in a broader index of European energy companies, according to Reuters. EL7 data recorded a close of 50.35 for the BP symbol on October 29, without specifying the currency or market. The record results and fourth-quarter operating outlook provide two inputs for the December update, when the company will present its long-term measures and targets.