bp has reported solid operational and financial performance for the first quarter of 2026, supported by improved asset reliability, resilient production, and stronger downstream operations. Upstream plant reliability increased to 95.7%, compared with 95.4% in the previous quarter. Production levels remained broadly stable, as higher output from the Gulf of America and strong delivery from bpx Energy offset disruptions in the Middle East and the impact of a North Sea divestment completed in late 2025.
Downstream performance also strengthened during the quarter, with refining availability rising to 96.3%, exceeding the company’s 96% target. The improvement reflects a continued focus on safe and efficient operations to meet customer demand.
bp reported underlying replacement cost (RC) profit of $3.2 billion for the quarter, compared with $1.5 billion in the fourth quarter of 2025. The increase was driven by strong oil trading performance and improved midstream contributions. Reported profit stood at $3.8 billion, a significant turnaround from a loss of $3.4 billion in the previous quarter.
Operating cash flow reached $2.9 billion despite a $6.0 billion working capital build, largely influenced by higher prices, seasonal inventory patterns, and longer shipping routes. Net debt increased to $25.3 billion at quarter-end, reflecting lower cash flow and working capital movements.
Segment performance showed balanced contributions across the portfolio. The gas and low carbon energy business delivered an underlying profit of $1.3 billion, reflecting stable realizations and average trading performance. Oil production and operations generated $2.0 billion in underlying profit, with higher realizations offsetting divestment impacts. The customers and products segment delivered the strongest growth, with underlying profit rising to $3.2 billion, supported by improved refining margins, higher throughput, and strong trading results.
bp also advanced its strategic agenda during the quarter, announcing an agreement to sell its Gelsenkirchen refinery. Following completion, the company expects to increase its structural cost reduction target by $1 billion to a range of $6.5–7.5 billion by 2027.
The company reaffirmed its commitment to shareholder returns, declaring a quarterly dividend of 8.320 cents per ordinary share. It continues to target annual dividend growth of at least 4%. Looking ahead, bp plans to strengthen its balance sheet by reducing hybrid bond financing by approximately $4.3 billion to around $9 billion by 2027, subject to market conditions.
Capital expenditure guidance for 2026 remains unchanged at $13–13.5 billion. bp’s first-quarter performance highlights continued operational discipline, financial resilience, and progress toward long-term strategic objectives.
