■ Increase · August 4, 2026
BP Lifts Quarterly Dividend 4% to 8.66 Cents
BP increased its quarterly dividend by 4% to 8.66 cents per share, driven by higher oil prices and stronger refining margins.
Dividend Increase and Financial Results
BP PLC (NYSE: BP) has announced a 4% increase in its quarterly dividend, bringing the payout to 8.66 cents per share. The hike reflects improved financial performance, as higher oil prices offset lower production volumes. For the second quarter of 2026, BP reported underlying replacement cost (RC) profit of $5.73 billion, or $36.92 per share, up from $3.2 billion in the previous quarter. RC profit, which excludes non-recurring items, soared to $4.63 billion from $662 million in the same period last year.
The company attributed the stronger results to higher liquids and gas realizations, including the impact of price lags, stronger refining margins, and a better performance in its customers segment. These gains were partly offset by higher exploration write-offs.
Production and Segment Performance
Production in the oil production and operations segment averaged 1.44 million barrels of oil equivalent per day (MMboed) in Q2, down from 1.54 MMboed in Q1. The decline was due to seasonal maintenance and continued disruptions in the Middle East, partially offset by ramp-ups at major projects. Realized prices for liquids in this segment rose to $84.10 per barrel, while natural gas prices slipped to $2.16 per thousand cubic feet.
The gas and low-carbon energy segment produced 765,000 boed, down from 798,000 boed in Q1. Realized prices increased to $94.09 per barrel for liquids and $8.04 per thousand cubic feet for gas. BP noted that gas marketing and trading results were broadly flat compared with the prior quarter.
In the customers and products segment, refining throughput declined to 1.47 million barrels per day (MMbd) from 1.53 MMbd, but the average refining indicator margin improved to $29.60 per barrel. Oil trading results were slightly higher than in Q1.
Cash Flow and Balance Sheet
Revenue for Q2 totaled $69.11 billion, up from $52.26 billion in Q1. Operating activities generated $10.86 billion in net cash, compared with $2.86 billion in the previous quarter. BP reduced its net debt to $22.25 billion, with gearing at 22.6%. Cash and cash equivalents stood at $37.17 billion at the end of Q2.
Looking ahead, BP expects third-quarter 2026 reported upstream production to be between 2,100 and 2,250 thousand barrels of oil equivalent per day (mboe/d), compared with 2,201 mboe/d in Q2. This outlook includes the impact of continued Middle East disruptions, a reduced equity interest in Latin America, and an estimated 40 mboe/d impact from potential seasonal weather events in the Gulf of America. The company also anticipates a significantly lower result in its customers business, with broadly flat volumes and lower midstream results, as well as lower earnings in Castrol due to higher base oil costs.
BP has initiated a process to sell its U.S. biogas business, Archaea Energy, continuing its simplification efforts. Recent divestments include the Gelsenkirchen refinery in Germany, an agreement to sell its Austrian retail business, and marketing of its North Sea assets.
What it means for income investors
BP's dividend increase, supported by strong cash generation and a solid balance sheet, reflects its commitment to shareholder returns. However, the company faces ongoing challenges from Middle East disruptions and potential volatility in oil and gas prices, which could impact future payouts.
Reporting based on: Rigzone. Figures verified against market data where available.