BP reported second-quarter profits that more than doubled to $5.73 billion (£4.27bn) for the period ending June 30, 2026. The surge was driven by skyrocketing oil and gas prices resulting from the U.S.-Iran conflict, which disrupted energy exports and shipping through the Strait of Hormuz.
The results mark BP’s highest quarterly profits since the first year of Russia’s war on Ukraine. This windfall comes as the company’s underlying replacement cost profit comfortably beat analyst expectations of $5 billion, according to an LSEG-compiled consensus. The company’s financial performance mirrors a broader trend among energy supermajors; Shell posted its second-highest quarterly earnings on record, and Saudi Aramco saw a 44% rise in net profits to $32.69bn.
Meg O’Neill’s Strategic Pivot and Portfolio Simplification
Taking the helm in April, CEO Meg O’Neill has signaled a sharp departure from previous strategies. While the company previously pursued an aggressive expansion into renewables, O’Neill is now reducing renewables investments to focus on oil and gas. This shift includes the decision to market Archaea Energy, a U.S. biogas business BP bought for $4.1 billion in 2022, for a potential sale.
O’Neill’s simplification drive
is designed to reduce debt and prioritize assets with the highest returns. Further divestments include an agreement to sell its retail business in Austria and an intention to sell its UK North Sea business after six decades of production.
Despite the profit jump, O’Neill admitted the company is not making the most
of its potential. She outlined five core priorities to stabilize the firm: strengthening the balance sheet, simplifying the portfolio, tightening investment discipline, improving operational performance, and creating structures for faster decision-making.
Financial Discipline and Balance Sheet Recovery
BP’s balance sheet has shown significant improvement. Net debt fell to $22.25 billion by the end of the second quarter, down from $25.3 billion in March.
The company is also returning value to shareholders through a 4 per cent dividend increase, bringing the second-quarter payment to 8.66 cents per ordinary share.
| Metric | Q2 2026 Value | Previous/Expected Value |
|---|---|---|
| Underlying Replacement Cost Profit | $5.7 billion | $5 billion (Analyst Expectation) |
| Net Debt | $22.25 billion | $25.3 billion (March 2026) |
| Operating Cash Flow | $10.9 billion | Includes $1 billion working capital build |
| Brent Crude Average Price | $97 per barrel | $78 (Q1 2026) |
Political Friction and Public Backlash
The massive profits have sparked political volatility. In the U.S., President Donald Trump criticized oil majors for making too much money
based on shortages caused by the Iran war, demanding lower prices at the pump. This criticism extends to Exxon and Chevron, whose second-quarter profits soared to $14.5 billion and $12 billion, respectively.
In the UK, O’Neill has engaged with the new Prime Minister, Andy Burnham, advocating for the use of domestic resources over third-party imports. However, this stance puts the PM in a precarious position; Burnham faces a potential revolt over his apparent support for renewed North Sea drilling.
“Clearly not everyone is feeling the pain of the energy crisis. While BP banks another round of enormous profits, millions of households are paying the price through sky-high energy bills and a climate crisis accelerating rapidly out of control…”
Rosie Downes, head of campaigns at Friends of the Earth
The tension between corporate gain and public cost is stark.
Worth a look
