BP PLC reported a second-quarter profit of $5.7 billion, significantly exceeding analyst projections. The announcement came just after a former U.S. president criticized major oil companies for profiting from tensions in Iran.

BP's second-quarter underlying replacement cost profit, widely viewed as a proxy for net income, reached $5.7 billion. This surpassed the consensus estimate of $5.0 billion compiled by Refinitiv. The profit compares to $2.35 billion in the same period last year and $3.2 billion in the first quarter of 2026.

The surge in profitability for energy giants is driven by higher oil and gas prices, fueled by widespread conflict in the Middle East. Shipping through the Strait of Hormuz, a strategic waterway handling about one-fifth of global crude and natural gas, has been severely disrupted.

A former U.S. president publicly criticized major oil companies, accusing them of profiteering from the Iran conflict and high fuel prices, and calling for lower pump prices. He stated, "They're making a fortune off a supply shortage, and I can't accept that."

Exxon Mobil Corp saw its second-quarter profit double to $14.5 billion, while Chevron Corp reported a profit of $12 billion, a nearly 400% surge from $2.5 billion a year earlier.

Key highlights from BP's second-quarter results

BP increased its quarterly dividend by 4% to 8.66 cents per share. Operating cash flow stood at $10.9 billion, including a $1.0 billion adjusted working capital build. Net debt at the end of the quarter fell to $22.25 billion, down from $25.3 billion at the end of March.

BP Chief Executive Officer Meg O'Neill attributed the strong performance to the company's entire portfolio and addressed the criticism of oil giants. O'Neill stated, "I understand the pressure ordinary people feel when they drive to the pump and see the price. The reality is that we produce a global commodity, and our product's price is set by international commodity prices. BP is focusing on what we can control to try and ease the situation. We are ensuring our operations are stable, from the upstream assets that extract crude to the refineries that process it." O'Neill noted that the company has adjusted its refining schedules to maximize supply of essential fuels like jet fuel and diesel.

Analysts at Citigroup pointed out that BP's significant reduction in net debt has removed its label as "the most indebted among international oil majors." They expect debt levels to continue declining in the second half of the year. The analysts noted, "The suspension of share buybacks in the fourth quarter of last year was undoubtedly the key factor in reducing debt. The 4% dividend increase also confirms improved financial strength."

Advancing asset simplification strategy

BP announced the formal launch of a sales process for Archaea Energy, a U.S. biogas company it acquired for $4.1 billion in 2022 as part of a renewable energy strategy that was shelved in early 2025. The company is progressing with its asset simplification plan, focusing on its core oil and gas business and divesting non-core assets to reduce debt. BP confirmed the completion of the sale of its Gelsenkirchen refinery in Germany and related operations to investment group Klesch. This deal is expected to reduce the oil giant's underlying operating costs by about $1.0 billion annually.

In London trading, BP shares were up 8.10 pence, or 1.47%, at 560.20 pence as of 10:40 a.m. British Summer Time. On Tuesday morning, BP shares rose 0.8%, bringing the year-to-date gain to over 27%. After a period of frequent executive turnover, BP is seeking to stabilize its management. The London-listed company abruptly dismissed Chairman Albert Maniford in May, just eight months into his tenure. The board cited "significant concerns" regarding corporate governance standards, oversight mechanisms, and personal conduct, though Maniford has denied the allegations.