BP Raises Divestment Proceeds Target to $9 Billion After Aker BP Stake Sale
Key Facts
On November 5, BP raised its forecast for divestment proceeds and other income in 2026 to about $9 billion, an increase of nearly $1 billion from its previous guidance, after selling part of its stake in Aker BP. Before that, the company completed the sale of a 65% stake in its Castrol lubricants business to Stonepeak, retaining a 35% minority stake. BP said in its third-quarter results that its previous estimate for proceeds was about $8 billion, including nearly $6 billion from the Castrol deal. Stonepeak announced completion of the acquisition on November 2. The updated target therefore combines proceeds from both transactions in BP’s estimate for the year.
BP sold a 5% stake in Aker BP, in which it had held 15.9% before the transaction, for about $1.06 billion. Following the sale, its ownership fell to about 10.9%, or 68.7 million shares, according to the transaction disclosure. Reuters put the sale price at 311 Norwegian kroner per share. The transaction explains the timing of the higher proceeds target, as the increase came after the previous guidance was announced in the third-quarter results. When it announced the Castrol agreement, BP said the expected net proceeds of about $6 billion would be used entirely to reduce net debt.
Third-quarter results showed a jump in underlying replacement cost profit, which reached $8.458 billion, compared with $5.732 billion in the second quarter and $2.210 billion in the third quarter of 2025. BP attributed the improvement from the previous quarter mainly to a sharp rise in realized refining margins and stronger gas trading and marketing results. Operating cash flow also came in at $14.8 billion, compared with $7.8 billion in the same period a year earlier. These figures provide a picture of operational performance during the quarter, alongside proceeds related to asset sales. Net debt was $13.9 billion at the end of September, down from $22.2 billion at the end of 2025.
The improvement in operating results coincided with net pre-tax asset impairments of $4.1 billion in the third quarter. BP said the charges were mainly related to transition activities within its gas and low-carbon energy segment. Operationally, upstream plant reliability rose to 95.3% from 92.4% in the second quarter. Refinery availability also increased to 96.5% from 94.7% over the same period. These indicators put the improvement in profit and cash flow in the context of higher refining margins and gas trading results, alongside asset revaluation costs.
In the market, BP shares closed at $47.88 on November 2, then $47.59 on November 3 and $45.61 on November 4. They fell to $44.70 on November 5 and then $44.53 on November 6. In the oil market, prices fell by more than 7% in the November 2 session, after talks between Iranian and Qatari officials raised hopes of ending the U.S.-Israeli war with Iran and stabilizing supplies. That oil move came in a session before BP raised its proceeds target on November 5. The share and oil price moves provide a timeline separate from the details of the two divestment deals and the quarterly results.
Attention now turns to BP’s strategy and outlook update, scheduled for December 15, 2026, in New York. The company said the update will set out its longer-term plans, capital framework, performance measures and targets. The date comes after the company announced a reduction in net debt and raised its target for divestment proceeds and other income for the year. BP also said in its third-quarter results that it expects a significantly lower result from its customers business in the fourth quarter, with seasonal declines in volumes and a lower contribution from Castrol, subject to the expected divestment closing. The December update is set to provide details on the company’s financial plans and future metrics.