BP on Tuesday reported a stronger-than-expected second-quarter profit of $2.35 billion, exceeding analysts’ projections and highlighting a return to form amid ongoing global energy price volatility.
The figure, based on BP’s preferred measure of underlying replacement cost profit, topped the $1.81 billion consensus forecast compiled by LSEG and marked a sharp recovery from the $1.38 billion earned in the first quarter of 2025.
Though still below the $2.76 billion recorded in the same period last year, the results mark a positive turn for the company as it attempts to restore investor confidence after years of underperformance.
CEO Murray Auchincloss credited the improved performance to strong upstream operations and exploration results.
“Inside the upstream, we’ve had tremendous performance, along with record operating efficiency [and] along with starting up five new major projects,” BP CEO Murray Auchincloss told CNBC’s “Squawk Box Europe” on Tuesday.
“We’ve had tremendous exploration success, 10 commercial exploration discoveries this year and yesterday we announced our most exciting, the Bumerangue discovery in Brazil,” Auchincloss said.
Dividend and buyback remain steady amid cost review
BP said it would raise its quarterly dividend slightly to 8.32 cents per share, up from 8 cents, and maintain its $750 million share buyback programme for the second quarter, in line with the previous quarter.
Net debt was reduced to $26.04 billion, down from nearly $27 billion in the first three months of the year.
The company also announced a new internal cost review and portfolio evaluation as part of efforts to address shareholder concerns and streamline operations.
Despite persistent takeover speculation in recent months, rival Shell said in June that it had “no intention” of making an offer for BP.
Shares in BP have risen about 3.3% year-to-date, reflecting renewed investor interest fueled in part by the company’s shifting strategy and exploration successes.
BP’s latest results and the Brazil find come as the company repositions itself in the energy market, with a growing focus on oil and gas assets even as it maintains its long-term commitments to lower-carbon energy investments.
BP’s Brazil discovery could reshape upstream strategy
The London-listed energy major on Monday also revealed its largest oil and gas discovery in 25 years, signalling a deeper strategic shift back into hydrocarbons.
BP announced that it had made a major oil and gas find in the deepwater Santos basin offshore Brazil.
This potentially transformative discovery, made through the Bumerangue well, could significantly bolster BP’s upstream portfolio as the company eyes expanding its global production from just over 2.3 million barrels in 2024 to as much as 2.5 million barrels by 2030.
BP holds a 100% interest in the Brazilian block, under what it described as “very good commercial terms,” with Brazil’s Pre-Sal Petróleo acting as the production-sharing manager.
Analysts from Berenberg noted that the find offers BP a much-needed high-quality growth asset and could signal a strategic turning point.
Further data analysis is underway to evaluate the scale and commercial viability of the discovery.
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