In its 2025 second quarter trading statement, BP has indicated that it expects its hydrocarbons production to rise.
Earlier this year the group announced a change of strategy, with a renewed focus on its traditional oil and gas business. The reset came after BP was seen as underperforming compared to its comparable rivals, resulting in a falling share price. The firm’s executives at the time said the company’s move into renewables had been overly ambitious. BP has also been looking to reduce its debt by divesting some assets, including the Castrol lubricant and metalworking fluids business.
Oil production is expected to show the biggest rise, but low carbon energy and gas are also expected to make more moderate gains. The company said in the statement:
“Reported upstream production in the second quarter is now expected to be higher compared to the prior quarter, with production higher in oil production & operations, primarily in BPX energy, and slightly higher in gas and low carbon energy.”
The rising oil production comes during a period of relatively low oil prices, however. BP warned that compared to the previous quarter, this could reduce earnings by up to £591 million. It also said lower gas prices could affect results by up to £221 million. The company also signalled a sizeable impairment charge of £369 million to £1.1 billion, although it expects its net debt to go down slightly over the quarter.
Despite the mixed news, BP shares were trading 2% higher after publication of the statement.
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