BPPFF 6-K
Bp PLC (BP)
6-K
2026-07-14
For: 2026-07-14
View Original
Added on
July 15, 2026
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
14
July, 2026
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
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Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
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Exhibit
1.1
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2Q26 bp
Trading Statement Part 1 of 1 dated 14 July 2026
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Exhibit 1.1
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FOR IMMEDIATE RELEASE
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London 14 July 2026
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BP p.l.c. Trading Statement
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Second quarter 2026 trading statement
The
following Trading Statement provides a summary of BP p.l.c.'s (bp)
current estimates and expectations for the second quarter of 2026,
including data on the economic environment as well as group
performance during the period. The information presented is not
comprehensive of all factors which may impact bp's group results
for the second quarter 2026 and is not an estimate of those
results.
Also refer to bp's first quarter 2026 group results announcement on
28 April 2026 for second quarter and full year 2026 guidance items
which continue to apply unless explicitly stated. A summary of that
guidance is provided in the Appendix to this Trading Statement. All
information provided is subject to the finalization of bp's
financial reporting processes and actual results may vary. See the
Glossary for a definition of guidance items included in this
Trading Statement.
bp's group results for the second quarter 2026 are scheduled to be
published on 4 August 2026.
Updated 2Q26 guidance
Earnings considerations for 2Q 2026 underlying RC profit before
interest and tax, relative to 1Q 2026:
● Reported
upstream production in the
second quarter is expected to be 2,170 to 2,220mboe/d (1Q 2026:
2,339mboe/d) due to seasonal maintenance predominantly in the Gulf
of America and the effects of disruption in the Middle East. Within
this,
◦
gas & low carbon energy is expected to be 750 to 770mboe/d (1Q
2026: 798mboe/d).
◦
oil production & operations is expected to be 1,420 to
1,450mboe/d (1Q 2026: 1,541mboe/d).
●
Gas
& low carbon energy segment: realizations, compared to the prior quarter, are
expected to have an impact in the range of +$0.5 to 0.7 billion.
These include the impact of price lags and the changes in non-Henry
Hub natural gas marker prices. The gas marketing and trading result
is expected to be broadly flat compared with the first
quarter.
● Oil
production & operations segment: realizations, compared to the prior quarter, are
expected to have an impact in the range of +$1.8 to 2.1 billion,
including the impact of the price lags on bp's production in the
Gulf of America and the UAE. Exploration write-offs are expected to
be around $(0.5) billion this quarter, primarily reflecting the
impact of the sale of Bay du Nord in
Canada.
● Customers
& products segment: compared to the prior quarter, results are
expected to reflect the following factors:
◦ customers -
seasonally higher volumes, higher fuels margins and broadly flat
integrated midstream performance.
◦
products - stronger realized refining margins in the
range of +$1.2 to 1.4 billion. We expect throughput of 1,445 to
1,475mb/d (1Q 2026: 1,527mb/d), reflecting higher planned
turnaround activity and lower Whiting volumes following the April
third-party event. The oil trading result is expected to be
slightly higher compared with the first
quarter.
Other financial considerations for 2Q 2026
● The
group underlying effective tax rate for the second quarter is
expected to be between 33% and 37%, due to the geographical mix of
profits.
● Net
debt at the end of the second quarter is expected to be in the
range of $22 to 23 billion (1Q 2026: $25.3 billion). This reduction
is after:
◦
the payment of $2.9 billion to redeem the €2.5 billion
perpetual hybrid bonds on 22 June 2026 in line with plans to reduce
hybrids by $4.3 billion by end 2027. Remaining hybrid bonds are
expected to be around $13 billion at 2Q26 (1Q 2026: $16.0 billion);
and
◦
the payment for $1.1 billion Gulf of America settlement
liabilities, which contributes to an expected working capital build
in the range of $0 to 1.5 billion.
As
a result, we expect the total of net debt, hybrids and Gulf of
America settlement liabilities to reduce by around $6.3 to 7.3
billion compared with the first quarter.
● The
second quarter results are expected to include post-tax adjusting
items relating to impairments of around $1.0 billion. These charges
are primarily attributable to transition businesses in the gas
& low carbon energy segment and are excluded from underlying
replacement cost profit.
Underlying replacement cost (RC) profit before interest and tax,
underlying effective tax rate, net debt, and working capital (after
adjusting for inventory holding gains or losses, fair value
accounting effects and other adjusting items) are non-IFRS
measures.
Trading conditions and rules of thumb
The
marker prices and margins below do not represent the actual prices
or margins realized by bp during the given periods.
● Brent
averaged $103.85/bbl in the second quarter 2026 compared to
$81.13/bbl in the first quarter 2026.
● US
gas Henry Hub first of month index averaged $2.90/mmBtu in the
second quarter 2026 compared to $5.05/mmBtu in the first quarter
2026.
● The
bp RIM averaged $29.6/bbl in the second quarter 2026 compared to
$16.9/bbl in the first quarter 2026.
Rules of thumb below are intended to give directional indicators of
the impact of changes in the trading environment on bp's 2026
full-year pre-tax results. These rules of thumb are approximate and
based upon bp's current portfolio of oil and gas businesses. The
weighting of the rules of thumb for Brent and Henry Hub is an
approximate split of 80% to oil production & operations and 20%
to gas & low carbon energy.
The relationship between prices and results is not necessarily
linear across a wide range of oil and gas prices. Changes in
margins, differentials, seasonal demand patterns, operational
issues, hedge positions and other factors including timing of
acquisition and divestment activity, can also materially impact the
results. Hedging activity impacts the Henry Hub rule of thumb and
as a result should not be treated as representative of the
longer-term sensitivity.
Significant differences between the estimates implied by the
application of the rules of thumb and the actual results themselves
may also arise due to complex mechanisms for calculating government
shares of oil and gas revenues in some jurisdictions, depending on
price levels.
The bp Refining Indicator Margin rule of thumb reflects the
sensitivity of the group's results to changes in refining margins.
However, actual margins realized by bp may vary due to a variety of
factors, including the actual mix of a crude and product for a
given quarter. Under the current market conditions, and
resulting heightened volatility in commodity and refined product
prices, crude differentials, transportation costs and product mix
may vary significantly. See Refining Indicator
Margin link for more
information.
Further information on prices and bp's current rules of thumb can
be found at the following link: bp.com Rules of
Thumb
Rules of thumb
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Operating environment rules of thumb for the full year
2026
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Impact on pre-tax replacement cost operating profit
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Oil pricea
Brent +/- $1/bbl
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$340m
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Natural gas pricea
Henry Hub +/- $0.10/mmBtu
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$40m
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Refining indicator margin
RIM +/- $ 1/bbl
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$550m
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a. Combined
indicator for oil production & operations and gas & low
carbon energy.
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of BP p.l.c., is Michael Sosso, Executive Vice President,
Legal.
Appendix
Select financial and operating metrics
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1Q26 reported
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2Q26 updated outlook
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upstream productiona (mboe/d)
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2,339
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2,170 to 2,220
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oil production & operations production (mboe/d)
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1,541
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1,420 to 1,450
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gas & low carbon energy production (mboe/d)
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798
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750 to 770
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oil production & operations exploration write-offs ($
billion)
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-
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~(0.5)
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Refining throughput (mb/d)
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1,527
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1,445 to 1,475
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Group underlying effective tax rate (%)
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32
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between 33 and 37
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Net debt ($ billion)
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25.3
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22 to 23
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Hybrid bonds ($ billion)
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16.0
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~13.0
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Working
capital (build) ($ billion)
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(6.0)
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0 to (1.5)
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a. Because
of rounding, upstream production may not agree exactly with the sum
of gas & low carbon energy and oil production &
operations.
Guidance issued in 1Q26 Stock Exchange
Announcementa
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Guidance Area
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Full Year 2026
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2Q26 vs 1Q26
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Reported and underlying
upstream production
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Reported upstream production to be lower due to effects of
disruption in the Middle East and underlying upstream production to
be broadly flat, of which oil production & operations broadly
flat and gas & low carbon energy lower
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Reported upstream production to be lower due to seasonal
maintenance predominantly in the Gulf of America and the effects of
disruption in the Middle East. The heightened volatility in the oil
and gas prices could also impact PSA contracts.
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Customers
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● Expect
to make continued progress growing cash flows, supported by lower
underlying operating expenditure* driven by structural cost
reductions*. These benefits will be partly offset by the earnings
impact of completed and announced divestments
● Reported
earnings will benefit from lower depreciation as a result of the
assets held for sale accounting treatment of Castrol following the
planned divestment
● Fuel
margins remain sensitive to movements in the cost of
supply
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● Seasonally
higher volumes to be more than offset by a lower midstream result,
including the potential reversal of the 1Q timing
effects.
● Fuels
margin to remain sensitive to conditions and developments in the
Middle East
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Products
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● Significantly
lower level of turnaround activity
● Refining
margins to remain sensitive to the cost of supply and conditions in
the Middle East
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● Refining
throughput to be impacted by a higher level of planned refinery
turnaround activity
● Lower
throughput at Whiting due to a third-party event in April which has
now been resolved
● Refining
margins remain sensitive to the cost of supply and conditions in
the Middle East
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Hybrid capital
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Reduce through the redemption, without replacement, of €2.5bn
of perpetual hybrid bonds
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OB&C
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Around $1bn charge
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DD&A
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Broadly flat
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Underlying effective tax rateb
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Around 40%
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Capital expenditure
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$13-13.5bn, evenly weighted through the year
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Divestment and other proceeds
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$9-10bn, including ~$6bn from the announced Castrol transaction,
all significantly weighted to the 2H
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Gulf of America oil settlement payments
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~$1.6bn pre-tax including $0.4bn in 1Q and $1.1bn 2Q
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a Refer
to bp's first quarter 2026 group results announcement and bp.com
for full text and definitions.
b Underlying
effective tax rate is sensitive to a range of factors, including
the volatility of the price environment and its impact on the
geographical mix of the group's profits and
losses.
Glossary
Net debt and gearing are
non-IFRS measures. Net debt is calculated as finance debt, as shown
in the balance sheet, plus the fair value of associated derivative
financial instruments that are used to hedge foreign currency
exchange and interest rate risks relating to finance debt, for
which hedge accounting is applied, less cash and cash equivalents.
Net debt does not include accrued interest, which is reported
within other receivables and other payables on the balance sheet
and for which the associated cash flows are presented as operating
cash flows in the group cash flow statement. Gearing is defined as
the ratio of net debt to the total of net debt plus total equity.
bp believes these measures provide useful information to investors.
Net debt enables investors to see the economic effect of finance
debt, related hedges and cash and cash equivalents in total.
Gearing enables investors to see how significant net debt is
relative to total equity. The derivatives are reported on the
balance sheet within the headings 'Derivative financial
instruments'. The nearest equivalent measures on an IFRS basis are
finance debt and finance debt ratio. A reconciliation of finance
debt to net debt is provided in the Stock Exchange
Announcement.
We are unable to present reconciliations of forward-looking
information for net debt or gearing to finance debt and total
equity, because without unreasonable efforts, we are unable to
forecast accurately certain adjusting items required to present a
meaningful comparable IFRS forward-looking financial measure. These
items include fair value asset (liability) of hedges related to
finance debt and cash and cash equivalents, that are difficult to
predict in advance in order to include in an IFRS
estimate.
Realizations are the
result of dividing revenue generated from hydrocarbon sales,
excluding revenue generated from purchases made for resale and
royalty volumes, by revenue generating hydrocarbon production
volumes. Revenue generating hydrocarbon production reflects the bp
share of production as adjusted for any production which does not
generate revenue. Adjustments may include losses due to shrinkage,
amounts consumed during processing, and contractual or regulatory
host committed volumes such as royalties. For the gas & low
carbon energy and oil production & operations segments,
realizations include transfers between businesses and are based on
sales by consolidated subsidiaries only - this excludes
equity-accounted entities.
Refining indicator margin (RIM) is a simple indicator of the weighted average of
bp's crude slate and product yield as deemed representative for
each refinery. Actual margins realized by bp may vary due to a
variety of factors, including the actual mix of a crude and product
for a given quarter.
Replacement cost (RC) profit or loss reflects the replacement cost of inventories sold
in the period and is calculated as profit or loss attributable to
bp shareholders, adjusting for inventory holding gains and losses
(net of tax). RC profit or loss for the group is a non-IFRS
measure. The nearest equivalent measure on an IFRS basis is profit
or loss attributable to bp shareholders.
Underlying effective tax rate (ETR) is a non-IFRS measure. The underlying ETR is
calculated by dividing taxation on an underlying replacement cost
(RC) basis by underlying RC profit or loss before tax. Taxation on
an underlying RC basis for the group is calculated as taxation as
stated on the group income statement adjusted for taxation on
inventory holding gains and losses and total taxation on adjusting
items. Information on underlying RC profit or loss is provided
below. Taxation on an underlying RC basis presented for the
operating segments is calculated through an allocation of taxation
on an underlying RC basis to each segment. bp believes it is
helpful to disclose the underlying ETR because this measure may
help investors to understand and evaluate, in the same manner as
management, the underlying trends in bp's operational performance
on a comparable basis, period on period. Taxation on an underlying
RC basis and underlying ETR are non-IFRS measures. The nearest
equivalent measure on an IFRS basis is the ETR on profit or loss
for the period.
Underlying RC profit or loss before interest and
tax for the operating
segments or customers & products businesses is a non-IFRS
measure and is calculated as RC profit or loss including profit or
loss attributable to non-controlling interests before interest and
tax for the operating segments and excluding net adjusting items
for the respective operating segment or business. The nearest
equivalent measure on an IFRS basis for segments and businesses is
RC profit or loss before interest and taxation.
upstream includes oil and
natural gas field development and production within the gas &
low carbon energy and oil production & operations segments.
Upstream production includes bp's share of equity-accounted
entities.
Working capital is
movements in inventories and other current and non-current assets
and liabilities as reported in the condensed group cash flow
statement.
Change in working capital adjusted for inventory holding
gains/losses, fair value accounting effects relating to
subsidiaries and other adjusting items is a non-IFRS measure. It is
calculated by adjusting for inventory holding gains/losses reported
in the period; fair value accounting effects relating to
subsidiaries reported within adjusting items for the period; and
other adjusting items relating to the non-cash movement of US
emissions obligations carried as a provision that will be settled
by allowances held as inventory. This represents what would have
been reported as movements in inventories and other current and
non-current assets and liabilities, if the starting point in
determining net cash provided by operating activities had been
underlying replacement cost profit rather than profit for the
period. The nearest equivalent measure on an IFRS basis for this is
movements in inventories and other current and non-current assets
and liabilities.
bp utilizes various arrangements in order to manage its working
capital including discounting of receivables and, in the supply and
trading business, the active management of supplier payment terms,
inventory and collateral.
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. 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. Actual results or outcomes, may differ
materially from those expressed in such statements, depending on a
variety of factors, including (without limitation): the extent and
duration of the impact of current geopolitical and market
conditions including price fluctuations in crude oil, natural gas
and refined products; changes in demand for bp's products; currency
fluctuations; drilling and production results; reserves estimates;
sales volume and sales mix numbers; supply and demand imbalances
including as a result of direct or indirect restrictions on
production or disruptions to supply; regional pricing differentials
and refining margins; seasonal impacts on product demand and
operating expenses; resolution of trading and derivative positions
for the quarter; 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; natural
disasters and adverse weather conditions; changes in public
expectations and other changes to business conditions; wars,
regional conflicts including the Middle East conflict and acts of
terrorism; cyber-attacks or sabotage as well as those factors
discussed under "Risk factors" in bp's Annual Report and Form 20-F
2025 as filed with the US Securities and Exchange Commission.
Furthermore, additional factors may exist that will be relevant to
bp's group results for the second quarter of 2026 that are not
currently known or fully understood. Neither bp nor any of its
subsidiaries assumes any obligation to update, revise or supplement
any forward-looking statement contained in this announcement to
reflect future circumstances, events or information.
The contents of websites referred to in this announcement do not
form part of this announcement.
Contacts
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London
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Houston
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Press Office
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Rita Brown
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Paul Takahashi
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+44 (0) 7787 685821
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+1 713 903 9729
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Investor Relations
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Craig Marshall
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Graham Collins
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bp.com/investors
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+44 (0) 203 401 5592
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+1 832 753 5116
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BP p.l.c.'s LEI Code 213800LH1BZH3DI6G760
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BP
p.l.c.
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(Registrant)
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Dated: 14
July 2026
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/s/ Ben
J. S. Mathews
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Ben J.
S. Mathews
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Company
Secretary
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