BP Surpasses Q2 Profit Forecast as CEO Commits to Investor Improvements

BP has reported a second-quarter profit of $2.4 billion, exceeding analysts’ expectations despite a decline compared to the previous year. The company’s chief executive, Murray Auchincloss, emphasized a commitment to delivering better results for investors. The profit figure, known as the underlying replacement cost profit, is the closest measure to net income. It dropped from $2.76 billion in the same quarter of 2024 but surpassed the analyst consensus estimate of $1.82 billion provided by the company.

The increase in profit from the first quarter of this year, which was notably less impressive, was attributed to several factors. BP benefited from an average gas marketing and trading result, improved refining margins, and stronger earnings in its customers division. Additionally, a robust performance in oil trading contributed to the better results, although these gains were partially offset by lower realizations in liquids and gas, and a higher level of refinery turnaround activity.

Dividend and Share Buyback Announced

Alongside its earnings report, BP declared a dividend of 8.32 cents per ordinary share, representing a 4% increase. The company also announced a share buyback program worth $750 million for the second quarter. These financial moves come as part of BP’s strategy to enhance shareholder value.

In the earnings release, BP addressed its progress on structural cost savings. The company aims to achieve $4 billion to $5 billion in cost reductions by the end of 2027, relative to its 2023 baseline. BP reported achieving structural cost reductions of $900 million in the first half of 2025, with total cost cuts of $1.7 billion so far against the 2023 benchmark.

Auchincloss reiterated the company’s focus on its long-term plan, stating, “We are two quarters into a twelve-quarter plan and are laser-focused on delivery of our four key targets. While we should be encouraged by our early progress, we know there’s much more to do.”

Review of Business Portfolio Underway

In light of increasing pressure from investors, particularly from activist hedge fund Elliott Management, which holds a 5% stake in BP, the company announced a thorough review of its business portfolio. This review aims to identify further cost savings and enhance operational efficiency while maintaining a commitment to safety standards.

“We are also initiating a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry,” Auchincloss added. His remarks reflect BP’s determination to adapt and respond to shareholder expectations while navigating challenges in the energy market.

As BP works towards these goals, its financial performance and strategic decisions will be closely watched by investors and industry analysts alike.