BP Beats Q2 Expectations as CEO Highlights Major Oil Exploration Success
TradingKey – British Petroleum (BP) reported second-quarter 2025 results on Tuesday, delivering robust performance despite lower oil prices compared to the prior period.
During the quarter, BP’s underlying replacement cost profit reached $2.4 billion, significantly exceeding the $1.81 billion consensus estimate compiled by London Stock Exchange Group (LSEG).
Operating cash flow surged to $6.3 billion (including a $1.4 billion increase in working capital), a marked improvement from the $2.8 billion reported in Q1 2025.
Net debt declined to $26.04 billion at quarter-end, down from nearly $27 billion at the end of Q1. BP reaffirmed its long-term financial targets, maintaining its commitment to reduce net debt to between $14 billion and $ 18 billion by the end of 2027.
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Source: BP
This quarterly performance is critical for BP’s investor confidence rebuilding, following a period where the company lagged behind peers in financial results.
BP CEO Murray Auchincloss stated, “Inside the upstream, we’ve had tremendous performance, along with record operating efficiency [and] along with starting up five new major projects.”
Notably, Monday’s announcement of the Bumerangue oil field discovery off Brazil’s coast stands out as BP’s largest find in Brazil in nearly 25 years. The discovery is expected to significantly bolster the company’s future hydrocarbon reserves and production growth, particularly amid BP’s continued expansion into Qatar’s hydrogen projects.
Auchincloss also emphasized cost discipline: "We’re committed to safely reducing our structural costs by $4-5 billion by 2027. It’s a key driver underpinning our cash flow target and an area of relentless focus for BP."
He revealed that approximately $1.7 billion in structural cost savings have been achieved since the program’s launch, with roughly three-quarters stemming from supply chain efficiencies and organizational transformation.
BP shares closed up 2.28% at $32.49 on Monday. TradingKey data shows Wall Street analysts’ current target price stands at $34.902, indicating 9.93% upside potential from current levels.
Source: TradingKey
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