BP's Q2 Earnings Beat Estimates, Revenues Decline Y/Y

Core Insights - BP plc reported second-quarter 2025 adjusted earnings of 90 cents per American Depositary Share, exceeding the Zacks Consensus Estimate of 68 cents, but down from $1.00 in the previous year [1][10] - Total quarterly revenues were $47.7 billion, missing the Zacks Consensus Estimate of $60.7 billion and declining from $48.3 billion reported a year ago [1][10] - The better-than-expected earnings were primarily due to higher oil production, which was partially offset by lower price realizations [2] Operational Performance - BP's total production for the second quarter was 1,518 thousand barrels of oil equivalent per day (Mboe/d), an increase from 1,481 Mboe/d in the year-ago quarter, surpassing the estimate of 1,475.8 Mboe/d [3] - The company sold liquids at $59.74 per barrel, down from $73.01 a year ago, while natural gas was sold at $3.66 per thousand cubic feet, up from $2.02 [4] - Overall hydrocarbon price realization decreased to $49.03 per Boe from $55.78 year over year [4] Segment Performance - Underlying replacement cost earnings before interest and tax for the oil segment were $1.9 billion, down from $3.3 billion in the year-ago quarter and below the estimate of $2.8 billion, affected by lower price realizations for liquids [5] - The Gas & Low Carbon Energy segment reported profits of $1.5 billion, slightly up from $1.4 billion in the previous year, despite lower realizations and higher depreciation charges [6] - The Customers & Products segment's underlying replacement cost earnings were $1,533 million, higher than $1,149 million in the year-ago quarter, driven by stronger refining margins [7] Capital Expenditure and Financials - Organic capital expenditure for the quarter totaled $3.3 billion, matching total capital spending [11] - BP's net debt stood at $26 billion at the end of the second quarter, with a gearing of 24.6% [12] Outlook - BP anticipates a slight dip in upstream production for the third quarter of 2025, alongside a seasonal rise in customer business volumes and a significant decline in refinery turnaround activity [13] - For 2025, BP forecasts slightly lower overall upstream production compared to 2024, with flat oil output and a decrease in gas and low-carbon output, while expecting divestment proceeds of $3-$4 billion [14]