BP has announced an underlying replacement cost (RC) profit of $2.4bn (£1.8bn) for the second quarter of 2025 (Q2 2025), a substantial increase from the $1.4bn reported in the previous quarter.
This rise reflects an average gas marketing and trading result, stronger realised refining margins and robust customer results.
However, it was partly offset by lower liquids and gas realisations and a significantly higher level of refinery turnaround activity.
The underlying effective tax rate for the quarter was 36%, a decrease from the 50% seen in Q1, influenced by changes in the geographical mix of profits.
The reported profit for the quarter stood at $1.6bn, a considerable rise from $700m in Q1 2025.
This figure accounts for inventory holding losses of $600m and a net adverse impact of adjusting items totalling $700m.
Notable adjusting items included net impairments of $1.1bn and favourable fair value accounting effects of $600m.
In the Gas & Low Carbon Energy segment, the RC profit before interest and tax was $1bn, down from $1.4bn in the previous quarter.
The underlying RC profit, after adjustments, was $1.5bn, reflecting an average gas marketing and trading result and higher volumes, despite lower realisations and increased depreciation charges.
The Oil Production & Operations segment reported a RC profit before interest and tax of $1.9bn, a decrease from $2.8bn in the previous quarter.
The underlying RC profit stood at $2.3bn after adjustments, with the decline attributed to lower realisations and a higher depreciation charge, albeit partially offset by higher production.
The Customers & Products segment saw a RC profit before interest and tax of $1bn, up from $100m in the previous quarter.
The underlying RC profit reached $1.5bn after adjustments, with a $400m increase in the customer's underlying result and a $500m rise in the product's underlying result, driven by stronger refining margins and oil trading, despite increased refinery turnaround activity.
Operating cash flow for the quarter was reported at $6.3bn, which included a $1.1bn settlement payment for the Gulf of Mexico.
This marked an increase of approximately $3.4bn from the previous quarter, reflecting higher earnings and a lower working capital build.
Net debt was reduced to $26bn as cash inflows from higher operating cash flow and divestment proceeds surpassed cash outflows.
BP remains committed to maintaining a strong balance sheet and is targeting a net debt range of $14–18bn by the end of 2027.
BP CEO Murray Auchincloss said: “This has been another strong quarter for bp operationally and strategically. We are delivering on our plan to grow the upstream and focus the downstream with reliability across both at >96%.
“So far this year we have brought five new oil and gas major projects onstream, sanctioned four more and made ten exploration discoveries, including the significant discovery in Bumerangue block in Brazil.”
Furthermore, bp has announced a substantial hydrocarbons discovery at the Bumerangue site within the deep-water Santos Basin off the coast of Brazil.
The exploratory well, 1-BP-13-SPS, encountered the reservoir around 500m beneath the apex of the geological structure.
