BP plc (LON:BP) has announced its Group results for the Third quarter and nine months 2026
Cash generation accelerates balance sheet strengthening
| Financial summary | Third | Second | Third | Nine | Nine | |||||||||
| quarter | quarter | quarter | months | months | ||||||||||
| $ million | 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||
| Profit for the period attributable to bp shareholders | 4,696 | 3,911 | 1,161 | 12,449 | 3,477 | |||||||||
| Inventory holding (gains) losses*, net of tax | (1,598 | ) | 717 | 62 | (4,061 | ) | 351 | |||||||
| Replacement cost (RC) profit* | 3,098 | 4,628 | 1,223 | 8,388 | 3,828 | |||||||||
| Net adverse impact of adjusting items*, net of tax | 5,360 | 1,104 | 987 | 9,000 | 2,116 | |||||||||
| Underlying RC profit* | 8,458 | 5,732 | 2,210 | 17,388 | 5,944 | |||||||||
| Operating cash flow | 14,829 | 10,858 | 7,786 | 28,547 | 16,891 | |||||||||
| Capital expenditure | (3,036 | ) | (3,086 | ) | (3,381 | ) | (9,412 | ) | (10,365 | ) | ||||
| Divestment and other proceeds(a) | (21 | ) | 609 | 28 | 836 | 1,712 | ||||||||
| Net debt*(b) | 13,870 | 22,251 | 26,054 | 13,870 | 26,054 | |||||||||
| Underlying operating expenditure* | 5,264 | 5,333 | 5,487 | 15,966 | 16,248 | |||||||||
| Announced dividend per ordinary share (cents per share) | 8.660 | 8.660 | 8.320 | 25.640 | 24.640 | |||||||||
| Underlying RC profit per ordinary share* (cents) | 54.37 | 36.92 | 14.24 | 112.06 | 37.98 | |||||||||
| Underlying RC profit per ADS* (dollars) | 3.26 | 2.22 | 0.85 | 6.72 | 2.28 | |||||||||
Key headlines
• Earnings improve, supported by the macro environment. 3Q 2026 underlying RC profit $8.5 billion, $2.7 billion higher than the prior quarter. Operating cash flow $14.8 billion, including adjusted working capital* release(c) of $0.5 billion
• Improved operational performance. 3Q 2026 upstream plant reliability 95.3% (2Q 2026 92.4%); reported production 2.2mmboe/d (2Q 2026 2.2mmboe/d); refining availability 96.5% (2Q 2026 94.7%); refining throughput 1,396mb/d (2Q 2026 1,467mb/d) reflects the divestment of Gelsenkirchen refinery.
• Strengthening the balance sheet. Strong cash generation combined with decision to allocate excess cash to strengthen the balance sheet enabled an $8.4 billion reduction in net debt to $13.9 billion.
• Strategy and outlook update on 15 December. We will set out the next phase of our plans to build a simpler, stronger and more valuable bp.
Meg O’Neill, Chief executive officer
“These are dynamic times with volatility and disruption to trade flows continuing to define energy markets.
The industry as a whole has been showing remarkable adaptability. Refineries have been running close to capacity to make up for shortfalls, shipping has been taking different and longer routes, and releases from strategic and commercial reserves are helping to bridge supply gaps.
I’m proud of the contribution bp is making to keep energy flowing. As a global integrated oil and gas company, our connectivity from the reservoir to the fuel pump is a significant source of strength and resilience, particularly given our ability to connect supply with demand.
We maintained upstream production at around 2.2 million barrels per day, upstream plant reliability and refining availability both improved compared to the previous quarter, and our trading performance was also higher.
This has generated a strong set of results, supported by the higher-price, higher-margin environment and some good progress on performance improvement across the business. Our underlying replacement cost profit for the quarter was $8.5 billion and operating cash flow was $14.8 billion, contributing to a reduction of $8.4 billion in net debt.
We have now delivered our net debt and structural cost reductions targets and have line of sight on the remaining two of the four primary financial targets we set ourselves for 2027.
Last week we announced an important step as we agreed with the State of Louisiana to accelerate the delivery of our Deepwater Horizon settlement commitments. Our intent is now to prioritize the use of excess cashflow to address our remaining Deepwater Horizon liabilities in full.
Deepwater Horizon was a tragedy. Eleven men lost their lives, and communities and the environment across the Gulf Coast were impacted. We will never forget – it changed bp. Its legacy guides us in how we operate today, with safety at the heart of everything we do.
And as we move forward, we will continue working with urgency to turn one good set of results into strong performance quarter after quarter. We have much more to do on the five priorities set out at mid-year to deliver a step change in performance and realize the full potential of this company.
Performance improvement priorities
Strengthening the balance sheet: The combined sum of bp’s net debt, hybrids, lease liabilities and Gulf of America settlement liabilities is down by $9.3 billion compared with the second quarter of the year. This is good progress, but we are still too leveraged and further strengthening of the balance sheet remains our number one job. Our goal is a strong balance sheet that, through the cycle, supports the dividend and disciplined investment in service of delivering value to shareholders.
Simplifying the portfolio and investing with discipline: We are moving at speed to simplify bp’s portfolio to assets that best fit our integrated model and deliver the most competitive cash and returns. In the quarter we agreed the sale of our Austrian mobility and convenience business, completed the sale of the Gelsenkirchen refinery, and announced plans to market our North Sea and Archaea businesses. Still to come is the expected imminent closure of the Castrol divestment, unlocking $6 billion to further strengthen the balance sheet.
We have also de-risked exploration and production prospects in Brazil, the Gulf of America and Iraq by bringing in partners. In Venezuela we signed agreements for offshore gas production close to our LNG facilities in Trinidad. We are being rigorous about where we put capital and focusing on the most competitive opportunities. But this quarter we recognized $4.0 billion of impairments linked largely to transition businesses; we know we need to be better stewards of our shareholders’ capital.
Driving operational excellence: The culture of ownership the bpx energy team has built in the US over the past three years is showing up in better execution, higher productivity and stronger returns. And in refining this quarter, availability and utilization improved and unit operating costs were down, unlocking greater value from our assets. This improvement needs to be sustained quarter on quarter and replicated across the company.
Hardwiring high performance and accountability: Senior leaders came together last month to hold up the mirror on past performance, challenge ways of working, and make new commitments on clearer accountabilities and better, faster data-based decision-making. We are giving our people clarity on the work they own, what they are expected to deliver and how success will be measured – supported by a much simpler governance and organizational structure that includes the return to upstream and downstream businesses.
Simpler, stronger, more valuable bp
Our goal is to be a resilient business that delivers strong performance in all price environments and grows long-term value for our shareholders. In December we will set out our longer-term plans and capital frame, alongside metrics and targets against which our performance can be judged as we continue to build a simpler, stronger, more valuable bp.
(a) Divestment proceeds are disposal proceeds as per the condensed group cash flow statement. See page 4 for more information.
(b) See Note 9 for more information.
(c) Change in working capital adjusted for inventory holding gains, fair value accounting effects relating to subsidiaries and other adjusting items. See page 27.
RC profit, underlying RC profit, net debt, underlying RC profit per ordinary share, underlying RC profit per ADS and adjusted working capital are non-IFRS measures. Inventory holding (gains) losses and adjusting items are non-IFRS adjustments.
3Q 2026 financial results summary
• Underlying RC profit* for the quarter was $8.5 billion, compared with $5.7 billion for the previous quarter. Compared with the second quarter 2026, the underlying result mainly reflects significantly higher realized refining margins and significantly higher gas and marketing trading result. The underlying effective tax rate (ETR)* in the quarter was 28%, compared with 34% for the previous quarter, which reflects changes in the geographical mix of profits.
• Reported profit for the quarter was $4.7 billion, compared with $3.9 billion for the second quarter 2026. The reported result for the third quarter is adjusted for inventory holding gains* of $1.6 billion (net of tax) and a net adverse impact of adjusting items* of $5.4 billion (net of tax) to derive the underlying RC profit. Adjusting items include adverse pre-tax fair value accounting effects* of $0.5 billion and post-tax net impairments of $4.0 billion (see page 26 for more information on adjusting items).
• Operating cash flow for the quarter, after a $0.5 billion working capital* release (after adjusting for inventory holding gains, fair value accounting effects and other adjusting items), was $14.8 billion, around $4.0 billion higher than the previous quarter, reflecting higher underlying earnings, partly offset by $0.9 billion higher income taxes paid.
• Net debt* was $13.9 billion at the end of the third quarter compared with $22.3 billion at the end of the second quarter 2026. This reduction reflects stronger cash generation during the quarter, partly offset by $1.0 billion perpetual hybrid securities redemption.
Segment results
• Gas & low carbon energy: The RC profit before interest and tax for the third quarter 2026 was $0.2 billion, compared with $1.6 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $3.0 billion, the underlying RC profit before interest and tax* for the third quarter was $3.2 billion, compared with $2.1 billion in the second quarter 2026. This reflects higher realizations which include the impact of changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result was significantly higher than the second quarter 2026.
• Oil production & operations: The RC profit before interest and tax for the third quarter 2026 was $3.4 billion, compared with $3.4 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.1 billion, the underlying RC profit before interest and tax for the third quarter was $3.5 billion, compared with $3.6 billion for the second quarter 2026. This reflects lower liquids realizations partly offset by lower exploration write-offs.
• Customers & products: The RC profit before interest and tax for the third quarter 2026 was $4.8 billion, compared with $5.1 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $2.2 billion, the underlying RC profit before interest and tax (underlying result) for the third quarter was $6.9 billion, compared with $5.0 billion in the second quarter 2026. The customers third quarter underlying result was lower by $0.5 billion, reflecting weaker fuels margins and a lower result in Castrol and midstream, partly offset by higher volumes due to seasonal effects and lower underlying operating expenditure*. The products third quarter underlying result was higher by $2.5 billion. In refining, the result reflects significantly higher realized refining margins, stronger commercial optimization, lower turnaround and maintenance activity, and the absence of the impact of the prior-quarter third party event at Whiting, partially offset by lower earnings following the Gelsenkirchen divestment. The oil trading result was slightly higher compared with the second quarter.
Financial results
In addition to the highlights on page 3:
• Profit attributable to bp shareholders in the third quarter and nine months was $4.7 billion and $12.4 billion respectively, compared with $1.2 billion and $3.5 billion in the same periods of 2025.
– After adjusting profit attributable to bp shareholders for inventory holding gains* and net impact of adjusting items*, underlying replacement cost (RC) profit* for the third quarter and nine months was $8.5 billion and $17.4 billion respectively, compared with $2.2 billion and $5.9 billion for the same periods of 2025. The underlying RC profit for the third quarter and nine months compared with the same periods in 2025 mainly reflects significantly higher realized refining margins and higher realizations. The oil trading contribution and the gas marketing and trading result for the third quarter and nine months were significantly higher compared with the same periods in 2025. See pages 7, 9 and 11 for more information.
– Adjusting items in the third quarter and nine months had a net adverse pre-tax impact of $5.9 billion and $8.4 billion respectively, compared with a net adverse pre-tax impact of $0.9 billion and $2.0 billion in the same periods of 2025.
– Adjusting items for the third quarter and nine months include an adverse pre-tax impact of fair value accounting effects* of $0.5 billion and $0.7 billion respectively, compared with a favourable pre-tax impact of $0.2 billion and $1.7 billion in the same periods of 2025. In both the gas & low carbon energy and customers & products segments, fair value accounting effects represent the difference in treatment between management’s internal performance measure and IFRS. In customers & products, the significant third quarter 2026 movement reflects changes in market prices affecting the valuation of positions subject to fair value accounting. In other businesses & corporate, the movements are driven by foreign exchange and interest rates with a significant favourable impact in the nine months 2025.
– Adjusting items for third quarter and nine months also include an adverse pre-tax impairment impact of $4.1 billion and $5.3 billion respectively, compared with net impairment charges of $0.4 billion and $1.9 billion for the same periods in 2025. The 2026 charges are primarily attributable to transition businesses in the gas & low carbon energy segment.
• The effective tax rate (ETR) on the profit before taxation for the third quarter and nine months was 40% and 43% respectively, compared with 53% and 52% for the same periods in 2025. Excluding inventory holding gains or losses and adjusting items, the underlying ETR* for the third quarter and nine months was 28% and 31% respectively, compared with 39% and 41% for the same periods in 2025. The lower underlying ETR for the third quarter and nine months reflects changes in the geographical mix of profits, particularly due to the higher results in products. Underlying ETR is a non-IFRS measure.
• Operating cash flow for the third quarter and nine months was $14.8 billion and $28.5 billion respectively, compared with $7.8 billion and $16.9 billion for the same periods in 2025. The increases reflect the higher underlying earnings in the periods.
• Capital expenditure in the third quarter and nine months was $3.0 billion and $9.4 billion respectively, compared with $3.4 billion and $10.4 billion in the same periods of 2025 reflecting our decisions around capital spend.
• Total divestment and other proceeds for the third quarter and nine months were an outflow of $21 million and an inflow of $0.8 billion respectively, compared with inflows of $28 million and $1.7 billion for the same periods in 2025. There were no other proceeds in the third quarter 2026 and the third quarter 2025. Other proceeds for the nine months 2025 were $1.0 billion from the sale of a non-controlling interest in the subsidiary that holds our 12% share in the Trans-Anatolian natural gas pipeline (TANAP).
• At the end of the third quarter, net debt* was $13.9 billion, compared with $22.3 billion at the end of the second quarter 2026 and $26.1 billion at the end of the third quarter 2025.
