British oil and gas company bp has reported a 304% year-on-year increase in the third quarter of 2026 (Q3 2026) net profit to $4.7bn, driven by stronger refining margins and higher trading performance.
The result compared with $1.2bn in the third quarter of 2025 and $3.9bn in the preceding quarter.
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Reported profit included $1.6bn of inventory holding gains after tax, while adverse adjusting items after tax totalled $5.4bn.
Underlying replacement cost profit, bp’s measure excluding inventory movements and adjusting items, increased 283% to $8.5bn from $2.2bn a year earlier.
The company said the quarter-on-quarter increase primarily reflected significantly higher realised refining margins and stronger gas marketing and trading results.
Operating cash flow rose 90% to $14.8bn, from $7.8bn in the corresponding 2025 period, and included a $0.5bn adjusted working-capital release.
Capital expenditure declined 10% to $3.0bn, compared with $3.4bn a year earlier.
Net debt stood at $13.9bn on 30 September, down 47% from $26.1bn a year earlier and 38% from $22.3bn at the end of June.
bp said the $8.4bn quarter-on-quarter reduction reflected cash generation, partly offset by a $1bn redemption of perpetual hybrid securities.
bp CEO Meg O’Neill said: “Our underlying replacement cost profit for the quarter was $8.5bn and operating cash flow was $14.8bn, contributing to a reduction of $8.4bn in net debt.”
The customers & products division reported underlying replacement cost profit before interest and tax of $6.9bn, a 305% increase from $1.7bn in the prior-year quarter.
Refining and trading accounted for $5.7bn of the result, compared with $549m a year earlier.
bp attributed the improvement in refining and trading to higher realised margins, commercial optimisation and lower turnaround and maintenance activity.
The result also reflected the absence of the previous quarter’s third-party event at its Whiting refinery, partly offset by lower earnings after the Gelsenkirchen refinery sale.
bp’s refining indicator margin rose to $46.70 per barrel, from $15.80 per barrel in the third quarter of 2025.
Refinery throughput fell 8% to 1.396 million barrels per day(mbpd), reflecting the Gelsenkirchen divestment completed on 31 July, while refining availability was broadly unchanged at 96.5%.
Oil production and operations delivered underlying profit before interest and tax of $3.5bn, up 54% from $2.3bn a year earlier, supported by higher realisations.
Reported production in the segment fell 8% to 1.436 million barrels of oil equivalent per day, while group upstream output declined 6% to 2.22 million barrels of oil equivalent per day.
For 2026, bp is maintaining its capital expenditure guidance of $13.5bn-$14bn and now expects reported upstream production of 2.21 million-2.25 million barrels of oil equivalent per day.
It expects divestment and other proceeds of around $8bn, including approximately $6bn from the planned sale of a 65% stake in Castrol.
bp said the Castrol transaction was expected to complete imminently. The company also said it intends to prioritise excess cash flow towards addressing its remaining Deepwater Horizon settlement liabilities in full.
