BP announced its highest quarterly profit in history, with a net profit of $8.6 billion in the third quarter of 2026. This profit is nearly four times the company's profit during the same period last year, driven by strong margins in oil and gas refining and trading.
Significant increase in refining margins
BP's refining margins averaged $46.7 per barrel during this period, showing a significant increase compared to $29.6 in the second quarter of 2026 and $15.8 in the same period last year. From the beginning of the year until the end of September, the company's refining margin increased to $31.2 per barrel, a substantial improvement from $12.0 last year. This increase was due to record-high global refining margins and disruptions in oil and fuel supply from the Middle East.
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Debt reduction and balance sheet strengthening
BP's operating cash flow in the third quarter reached $14.8 billion, doubling compared to last year. This increase allowed the company to strengthen its balance sheet and reduce its net debt by nearly $10 billion. BP's net debt at the end of the third quarter was $13.9 billion, down from $22.2 billion in the previous quarter. Unlike other major companies, BP did not increase its dividend this year and halted share buybacks to focus on debt reduction.
BP's CEO, Meg O'Neill, said: "We have now achieved our debt reduction and structural cost targets and are approaching the remaining financial goals for 2027." Meanwhile, other major European companies like Shell and TotalEnergies have also experienced similar profit increases driven by high refining margins.
TotalEnergies doubled its profit compared to last year, and Shell increased its share buyback program from $4.2 billion to $5 billion. This profit increase at Shell was also due to high refining margins and rising LNG and gas prices.
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