Aug. 4 at 10:52 AM
$BP BP sees FY26 reported upstream production 2,180-2,270 mboe/d
The company said, "bp now expects reported upstream production to be 2,180 to 2,270mboe/d, compared with the 2025, 2,312mboe/d. This includes the impact of disruption in the Middle East, the divestment of the Culzean gas field in the UK North Sea and bp's reduced equity interest in Latin America in addition to an estimated impact of around 15mboe/d for potential seasonal weather events in the Gulf of America. Underlying upstream production is expected to be broadly flat compared with 2025 with production from oil production & operations to be broadly flat and production from gas & low carbon energy to be lower. In its customers business, bp expects 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 are expected to remain sensitive to conditions and developments in the Middle East and any resulting policy responses. In products, bp expects throughput of 1,360 to 1,410mb/d, reflecting the completion of the Gelsenkirchen divestment and a significantly lower level of planned turnaround activity. Refining margins are expected to remain sensitive to the cost of supply and market conditions. bp continues to expect other businesses & corporate underlying annual charge to be around
$1.0 billion for 2026. The charge may vary quarter to quarter. bp now expects the depreciation, depletion and amortization to be
$17.0-17.5 billion. bp now expects the underlying ETR for 2026 to be 35-40%, which reflects the underlying ETR for the first half of 33%.
It 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. bp now expects capital expenditure to be
$13.5-14.0 billion reflecting decision to delay asset farm downs and capture better value. bp now expects divestment and other proceeds to be
$8-9 billion in 2026, including approximately
$6 billion from the announced Castrol transaction. bp continues to expect Gulf of America settlement payments for the year to be around
$1.6 billion pre-tax including
$0.4 billion pre- tax paid during the first quarter and
$1.1 billion pre-tax paid during the second quarter."
