BP expects net debt to have declined by as much as $7.8 billion to $13.5-14.5 billion as of the end of the third quarter (Q3) from $22.3 billion at the end of Q2.
The reduction partly reflects the redemption of $1 billion in hybrid securities, now expected to have fallen to around $12 billion entering the last quarter.
“As a result, we expect the total of net debt, hybrid bonds, leases and Gulf of America settlement liabilities to reduce by around $9-10 billion compared with the second quarter”, BP said in its quarterly trading statement. The statement previews results for the July-September period, scheduled for release October 30.
Last year BP set a target to cut net debt to $14-18 billion by the end of 2027.
On the other hand BP expects $3-4.5 billion in impairments for Q3. “These charges are primarily attributable to transition businesses in the gas and low-carbon energy segment and are excluded from underlying replacement cost profit [adjusted net income]”, it said.
BP had reported $6.04 billion in net impairments and losses from the sale of businesses and fixed assets for 2025. The company’s annual report attributed the bulk of the figure to Lightsource BP and Archaea Energy, with charges also stemming from offshore wind assets.
On December 16, 2025 state-owned Petróleo Brasileiro SA (Petrobras) and BP solar company Lightsource BP said they had penned a deal under which Petrobras would acquire 49.99 percent of Lightsource BP’s subsidiaries in Brazil. Lightsource BP’s Brazilian portfolio included 1-1.5 gigawatts (GW) in different stages of development, according to a joint online statement.
On August 4, 2025 Japanese integrated power utility JERA Co Inc and BP completed the spinoff of their offshore wind portfolios into a joint venture. BP contributed its development projects in Germany and the United Kingdom and secured leases in the UK and the United States.
On July 18, 2025 BP said it had agreed to divest its onshore wind business in the U.S. to LS Power Development LLC, offloading 1.3 GW of net capacity from 10 projects in operation.
On August 4, 2026 BP announced it had started a process to sell its biogas business in the United States, Archaea Energy.
For the first half of 2026, BP logged $1.69 billion in net impairments and losses from the sale of businesses and fixed assets. It attributed $525 million to its energy transition assets, without specifying the impacted business units.
For Q3, BP expects an average upstream production of 2.19-2.24 million barrels of oil equivalent a day (MMboed), compared to 2.2 MMboed in Q2. Q3 output mainly reflects “seasonal maintenance recovery partly offset by BP’s reduced equity interest in Latin America”, BP said. Production continues to be impacted by “disruption in the Middle East”, it added.
The “gas and low-carbon energy” segment is poised to benefit from higher gas prices. “The gas marketing and trading result is expected to be significantly higher compared with the second quarter”, BP said.
“Customers” results would be “driven by weaker fuels margins and higher base oil prices in Castrol, as well as a lower contribution from midstream, partly offset by slightly higher volumes due to seasonal effects”, BP said.
“Products” results would benefit from higher realized refining margins of over $1.9-2.1 billion, offsetting a lower throughput of 1.38-1.41 MMbd. BP attributed the throughput decrease to the sale of the Gelsenkirchen refinery in Germany, offset by lower planned turnaround and maintenance activity. “The oil trading result is expected to be broadly flat compared with the second quarter”, it added.
Q3 marks Meg O’Neill second full quarter as BP chief executive. The former CEO of Woodside Energy Group Ltd, an Australian liquefied natural gas-focused company, has maintained momentum started by previous management for BP’s capital discipline and portfolio simplification push, including a target of $20 billion worth of divestments by 2027.
BP’s reportable segments will consist of only two from next year: upstream and downstream. Currently results are reported under three segments: Oil Production and Operations, Gas and Low-Carbon Energy, and Customers and Products.
“Upstream will bring together BP’s oil and gas regions, including exploration, development and production activities, streamlining how the company finds, develops and produces the energy the world needs”, BP announced June 9. “It will also include BP’s upstream joint ventures and its renewable natural gas and CCS [carbon capture and storage] businesses.
“Downstream will include refining, terminals, pipelines, mobility and convenience, biofuels, aviation, hydrogen and Castrol, aligning how BP makes, moves and sells its products.
“Supply, Trading and Shipping will continue to operate across both segments, supporting delivery and value creation across the integrated system. As a distinctive capability for BP, it connects the portfolio, optimizes flows and delivers material value uplift.
“Renewable businesses, including solar and offshore wind, will sit within the Technology function as BP continues to advance a capital-light model in these areas.
“This organizational change builds on the concrete actions BP is taking to simplify its portfolio, reduce costs, maintain tight capex discipline and strengthen its balance sheet – all in service of growing value and returns for shareholders”.
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