BP plc (BP) Tops Q4 EPS by 1c; offers outlook

BP plc (NYSE: BP) reported Q4 EPS of $0.60, $0.01 better than the analyst estimate of $0.59. Revenue for the quarter came in at $47.38 billion versus the consensus estimate of $42.66 billion.

Outlook & Guidance
1Q 2026 guidance
• Looking ahead, bp expects first quarter 2026 reported upstream* production to be broadly flat compared with the fourth quarter
2025.
• In its customers business, bp expects seasonally lower volumes compared to the fourth quarter.
• In products, bp expects, compared to the fourth quarter, lower industry refining margins, partly offset by a lower level of refinery
turnaround activity.
• bp expects capital expenditure* to be broadly flat compared with the fourth quarter 2025.
2026 guidance
In addition to the guidance on page 2:
• bp expects reported upstream* production to be slightly lower and underlying upstream production* to be broadly flat compared
with 2025. Within this, bp expects underlying production from oil production & operations to be broadly flat and production from gas
& low carbon energy to be lower.
• In its customers business, bp expects to make continued progress growing cash flows, supported by lower underlying operating
expenditure* driven by structural cost reductions*. These benefits will be partly offset by the earnings impact of completed and
announced divestments. Reported earnings will benefit from lower depreciation as a result of the assets held for sale accounting
treatment of Castrol following the planned divestment. Fuel margins are expected to remain sensitive to movements in the cost of
supply.
• In products, bp expects significantly lower level of turnaround activity.
• bp expects other businesses & corporate underlying annual charge to be around $1.0 billion for 2026. The charge may vary quarter
to quarter.
• bp expects the depreciation, depletion and amortization to be broadly flat compared with 2025.
• bp expects the underlying ETR* for 2026 to be around 40% but it is sensitive to a range of factors, including the volatility of the price
environment and its impact on the geographical mix of the group’s profits and losses.
• bp expects capital expenditure to be $13-13.5 billion, weighted to the first half.
• bp expects divestment and other proceeds to be $9-10 billion in 2026, including approximately $6 billion from the announced
Castrol transaction, all significantly weighted to the second half.
• bp expects Gulf of America settlement payments for the year to be around $1.6 billion pre-tax including $0.4 billion pre-tax to be
paid during the first quarter and $1.1 billion pre-tax to be paid during the second quarter.

For earnings history and earnings-related data on BP plc (BP) click here.

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