Third quarter 2025 results

Highlights 

3Q25 underlying replacement cost (RC) profit* $2.2 billion

• Underlying RC profit for the quarter of $2.2 billion, compared with $2.4 billion for the previous quarter, reflects higher profitability in the operating segments offset by a higher underlying effective tax rate (ETR)* in the quarter of 39% which includes changes in the geographical mix of profits. Higher quarter-on-quarter underlying RC profit before interest and tax was driven by significantly lower level of refinery turnaround activity, stronger realized refining margins, and higher production, partly offset by a weak oil trading result, seasonal effects of environmental compliance costs, lower realizations and higher other businesses & corporate underlying charge.
• Reported profit for the quarter was $1.2 billion, compared with $1.6 billion for the second quarter 2025. The reported result for the third quarter is adjusted for inventory holding losses* of $0.1 billion (net of tax) and a net adverse impact of adjusting items* of $1.0 billion (net of tax) to derive the underlying RC profit. Adjusting items include net impairments and losses on sale of businesses and fixed assets of $0.8 billion (see page 25 for more information on adjusting items).
  
  

Segment results

• Gas & low carbon energy: The RC profit before interest and tax for the third quarter 2025 was $1.1 billion, compared with $1.0 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.4 billion, the underlying RC profit before interest and tax* for the third quarter was $1.5 billion, compared with $1.5 billion in the second quarter 2025. The third quarter underlying result before interest and tax reflects a lower depreciation, depletion and amortization charge and higher production, partly offset by lower realizations. The gas marketing and trading result was average.
• Oil production & operations: The RC profit before interest and tax for the third quarter 2025 was $2.1 billion, compared with $1.9 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.2 billion, the underlying RC profit before interest and tax for the third quarter was $2.3 billion, compared with $2.3 billion in the second quarter 2025. The third quarter underlying result before interest and tax reflects higher production, primarily in bpx energy, partly offset by higher exploration write-offs.
• Customers & products: The RC profit before interest and tax for the third quarter 2025 was $1.6 billion, compared with $1.0 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.1 billion, the underlying RC profit before interest and tax (underlying result) for the third quarter was $1.7 billion, compared with $1.5 billion in the second quarter 2025. The customers third quarter underlying result was higher by $0.1 billion, reflecting seasonally higher volumes, stronger integrated performance across fuels and midstream, and lower underlying operating expenditure*. The products third quarter underlying result was higher by $0.1 billion, reflecting stronger realized refining margins and a significantly lower level of turnaround activity, partly offset by seasonal effects of environmental compliance costs and the impact of unplanned Whiting outage due to exceptional weather conditions. The oil trading contribution was weak.
  
  

Operating cash flow* $7.8 billion and net debt* $26.1 billion

• Operating cash flow of $7.8 billion was around $1.5 billion higher than the previous quarter, reflecting a $0.9 billion working capital* release (after adjusting inventory holding losses, fair value accounting effects and other adjusting items) this quarter compared to a $1.4 billion build in the previous quarter, partly offset by $0.9 billion higher income taxes paid. Net debt was broadly flat at $26.1 billion in the third quarter as higher operating cash flow was partly offset by the redemption of $1.2 billion perpetual hybrid bonds. 

Financial frame

• bp is committed to maintaining a strong balance sheet and maintaining 'A' grade credit range through the cycle. We have a target of $14-18 billion of net debt by the end of 2027_(a).
• Our policy is to maintain a resilient dividend. Subject to board approval, we expect an increase in the dividend per ordinary share of at least 4% per year_(b). For the third quarter, bp has announced a dividend per ordinary share of 8.320 cents.
• Share buybacks are a mechanism to return excess cash. When added to the resilient dividend, we expect total shareholder distributions of 30-40% of operating cash flow, over time. Related to the third quarter results, bp intends to execute a $0.75 billion share buyback prior to reporting the fourth quarter results. The $0.75 billion share buyback programme announced with the second quarter results was completed on 31 October 2025.
• bp will continue to invest with discipline, driven by value and focused on delivering returns. We continue to expect capital expenditure to be around $14.5 billion in 2025. The capital frame of around $13-15 billion for 2026 and 2027 remains unchanged.

(a) Potential proceeds from any transactions related to the Castrol strategic review and announcement to bring a strategic partner into Lightsource bp will be allocated to reduce net debt.

(b) Subject to board discretion each quarter taking into account factors including current forecasts, the cumulative level of and outlook for cash flow, share count reduction from buybacks and maintaining ‘A’ range credit metrics.

The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.

Further information

Contacts

bp press office, London: +44 20 7496 4076, bppress@bp.com

Cautionary statement

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement:

The discussion in this announcement contains certain forecasts, projections and forward-looking statements - that is, statements related to future, not past events and circumstances - with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’, ‘focus on’ or similar expressions.

In particular, the following, among other statements, are all forward-looking in nature: plans, expectations and assumptions regarding oil and gas demand, supply, prices or volatility; expectations regarding production and volumes; expectations regarding turnaround and maintenance activity; plans and expectations regarding bp’s balance sheet, financial performance, results of operations, cost reduction, cash flows, and shareholder returns; plans and expectations regarding the amount and timing of dividends, share buybacks, and dividend reinvestment programs; plans and expectations regarding bp’s upstream production; plans and expectations regarding the amount, timing, quantum and nature of certain acquisitions, divestments and related payments and proceeds, including expectations regarding bp Wind Energy, Lightsource bp and other bp businesses and assets subject to disposal or divestment; plans and expectations regarding bp’s net debt, credit rating, investment strategy, capital expenditures, capital frame, underlying effective tax rate, and depreciation, depletion and amortization; expectations regarding bp’s customers business, including with respect to earnings growth, fuels margins and the impact of structural cost reduction; expectations regarding bp’s products, including underlying performance and refinery turnaround activity; expectations regarding bp’s other businesses & corporate underlying annual charge; expectations regarding Gulf of America settlement payments; plans and expectations regarding the Tiber-Guadalupe project as well as bp’s projects in the Mediterranean Sea, the Bumerangue block, the UK’s North Sea, and Aker BP’s project in the Yggdrasil area; plans and expectations regarding bp’s partnerships and other collaborations and agreements with BOTAS, Iraq’s North Oil Company and North Gas Company and others; expectations regarding bp’s tax liabilities and obligations; and expectations regarding the pending legal proceedings involving bp.

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp. Recent global developments have caused significant uncertainty and volatility in macroeconomic conditions and commodity markets. Each item of outlook and guidance set out in this announcement is based on bp’s current expectations but actual outcomes and results may be impacted by these evolving macroeconomic and market conditions.

Actual results or outcomes may differ materially from those expressed in such statements, depending on a variety of factors, including: the extent and duration of the impact of current market conditions including the volatility of oil prices, the effects of bp’s plan to exit its shareholding in Rosneft and other investments in Russia, overall global economic and business conditions impacting bp’s business and demand for bp’s products as well as the specific factors identified in the discussions accompanying such forward-looking statements; changes in consumer preferences and societal expectations; the pace of development and adoption of alternative energy solutions; developments in policy, law, regulation, technology and markets, including societal and investor sentiment related to the issue of climate change; the receipt of relevant third party and/or regulatory approvals including ongoing approvals required for the continued developments of approved projects; the timing and level of maintenance and/or turnaround activity; the timing and volume of refinery additions and outages; the timing of bringing new fields onstream; the timing, quantum and nature of certain acquisitions and divestments; future levels of industry product supply, demand and pricing, including supply growth in North America and continued base oil and additive supply shortages; OPEC+ quota restrictions; PSA and TSC effects; operational and safety problems; potential lapses in product quality; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations and policies, including related to climate change; changes in social attitudes and customer preferences; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought or imposed; the actions of prosecutors, regulatory authorities and courts; delays in the processes for resolving claims; amounts ultimately payable and timing of payments relating to the Gulf of America oil spill; exchange rate fluctuations; development and use of new technology; recruitment and retention of a skilled workforce; the success or otherwise of partnering; the actions of competitors, trading partners, contractors, subcontractors, creditors, rating agencies and others; bp’s access to future credit resources; business disruption and crisis management; the impact on bp’s reputation of ethical misconduct and non-compliance with regulatory obligations; trading losses; major uninsured losses; the possibility that international sanctions or other steps taken by governmental authorities or any other relevant persons may impact bp’s ability to sell its interests in Rosneft, or the price for which bp could sell such interests; the actions of contractors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks or sabotage; and those factors discussed under “Principal risks and uncertainties” in bp’s Report on Form 6-K regarding results for the six-month period ended 30 June 2025 as filed with the US Securities and Exchange Commission (the “SEC”) as well as “Risk factors” in bp’s Annual Report and Form 20-F for fiscal year 2024 as filed with the SEC.

Cautionary note to U.S. investors – This document contains references to non-proved reserves and production outlooks based on non-proved reserves that the SEC’s rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC’s website at www.sec.gov.