BP reported a sharp increase in second-quarter profit on Tuesday, with underlying replacement cost profit—the company’s proxy for net profit—reaching $5.7 billion for the period from April to June. This figure comfortably exceeded analyst expectations of $5 billion, according to an LSEG-compiled consensus, and represents more than double the $2.35 billion profit recorded in the same period last year CNBC.
The surge in earnings comes as energy supermajors benefit from higher fossil fuel prices driven by hostilities between the U.S. and Iran. The conflict has severely disrupted shipping through the Strait of Hormuz, a maritime choke point that typically handles approximately one-fifth of global oil and natural gas CNBC. BP’s results mark the company’s highest quarterly net profit since the third quarter of 2022 Reuters.
Trump Targets ‘Excessive’ Oil Profits
The financial windfall for oil majors has drawn sharp criticism from U.S. President Donald Trump. Speaking to reporters at the White House on Monday, Trump stated that oil companies are making too much money based on a shortage
and reiterated his demand for lower prices at the pump CNBC. Trump specifically singled out Exxon Mobil and Chevron, suggesting they should return a portion of their profits to the public The Guardian.
The scale of these gains is evident across the industry:
- Exxon Mobil: Second-quarter profits more than doubled to $14.5 billion.
- Chevron: Earnings soared by nearly 400% to $12 billion compared to $2.5 billion a year prior.
- Shell: Net profit doubled to nearly $10 billion in the three months to June.
- Aramco: Net profits rose 44% to $32.69 billion for the quarter ending June 30.
The American Petroleum Institute defended the industry, stating that high prices result from global supply and demand and uncertainty in the Strait of Hormuz rather than individual corporations Chosun.
BP Strategic Shift and Asset Divestment
BP CEO Meg O’Neill responded to the criticism by noting that the company produces a global commodity and prices are dictated by global commodity rates CNBC. O’Neill also stated that BP is not making the most
of its potential and indicated there is more to do
regarding a company overhaul, which may include exiting the North Sea after 60 years of production The Guardian.
As part of a simplification drive to double down on its core oil and gas business, BP has taken several steps to reduce debt and divest non-core assets:
- Archaea Energy: BP has launched a process to sell this U.S. biogas business, which it acquired for $4.1 billion in 2022 before scrapping its renewables strategy in early 2025 Reuters.
- Gelsenkirchen Refinery: The company completed the sale of this refinery and related businesses to the Klesch Group, a move expected to lower underlying operating expenditure by approximately $1 billion CNBC.
Financial Outlook and Operational Data
BP increased its second-quarter dividend by 4% to 8.66 cents per ordinary share. The company’s operating cash flow was $10.9 billion, and net debt decreased to $22.25 billion at the end of the second quarter, down from $25.3 billion in March CNBC.
For 2026, BP expects capital expenditure to range between $13.5 billion and $14 billion, an increase from previous guidance of $13 billion to $13.5 billion Reuters. Despite the profit growth, the company reported that upstream plant reliability fell to 92.4% from 95.7% in the previous quarter, and production declined to 2.2 million barrels of oil equivalent per day Reuters.
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