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BP PLC on Tuesday said it will conduct a thorough review of its businesses, including targetting further cost cuts, amid an improved second quarter performance. The London-based oil major is two quarters into a twelve-quarter plan and Chief Executive Murray Auchincloss said he was ‘encouraged’ by the early progress, but added, ‘we know there’s much more to do.’ BP has come under pressure from shareholders to boost profits and cut costs, with activist investor Elliott Management taking a 5% stake in the group earlier this year. BP reported pretax profit of $2.88 billion for the second quarter that ended June 30, falling 8.0% from $3.13 billion in the first quarter, but up 19% from $2.43 billion the year before. For the first half of 2025, pretax profit rose 2.0% to $6.01 billion from $5.89 billion a year earlier. Underlying replacement cost profit of $2.35 billion, was ahead of company compiled consensus for $1.82 billion, but below $2.76 billion a year ago. Total revenue for the first half fell 2.7% to $95.56 billion from $98.21 billion, which included a second-quarter revenue decline of 0.4% to $47.68 billion from $47.88 in the first quarter and a 1.2% on-year fall from $48.25 billion. In response, shares in BP rose 1.7% to 412.92 pence each in London on Tuesday morning. BP’s aims to ramp up its overhaul process follows talks with incoming chair Albert Manifold who starts next month, Auchincloss said. ‘He and I have been in discussions and have agreed that we will conduct a thorough review of our portfolio of businesses to ensure we are maximising shareholder value moving forward,’ the BP CEO added. ‘We are also initiating a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry.’ ‘BP can and will do better for its investors,’ he added. Manifold was recently named to replace incumbent chair Helge Lund. BP said it delivered $900 million of structural cost reductions in the first half of 2025, with $1.7 billion now delivered against a 2023 baseline. BP said it would invest with ‘discipline’ and continues to expect capital expenditure to be around $14.5 billion in 2025. The capital frame of around $13 billion to $15 billion for 2026 and 2027 remains unchanged, the firm added. Operating cash flow improved to $6.27 billion in the second quarter from $2.83 billion in the prior quarter, although it was down from $8.10 billion a year prior. The company declared a second quarter dividend of 8.32 cents per share, up 4.0% on-year from 8.00 cents, bringing its interim dividend 6.9% higher at 16.32 cents per share against 15.27 cents. In addition, BP announced a further share buyback for $750 million for the second quarter, in line with expectations. BP aims to complete the buyback, which was pitched at the same level as in the first quarter, by October 31. Looking ahead, the firm expects reported upstream production for the third quarter to be ‘slightly lower’ than the second quarter, and anticipates underlying upstream production for the full year also to be slightly lower than in 2024. Within this, 2025 underlying production from oil production & operations is expected ‘broadly flat’, and production from gas & low carbon energy is forecast to be lower. BP guides for ‘slightly higher’ depreciation, depletion and amortisation in 2025 against the year before. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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