BP backs FY26 capital expenditures view $13B-$13.5B

The company said, “BP (BP) now expects reported upstream production to be lower due to effects of disruption in the Middle East 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 continues to expect 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 continues to expect significantly lower level of turnaround activity. Refining margins are expected to remain sensitive to the cost of supply and conditions in the Middle East. BP continues to expect other businesses & corporate underlying annual charge to be around $1.0 billion for 2026. The charge may vary quarter to quarter. BP continues to expect the depreciation, depletion and amortization to be broadly flat compared with 2025. BP continues to expect 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 continues to expect capital expenditure to be $13-13.5 billion and now evenly weighted through the year. BP continues to expect 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 continues to expect Gulf of America settlement payments for the year to be around $1.6 billion pre-tax including $0.4 billion pre tax paid during the first quarter and $1.1 billion pre-tax paid during the second quarter.”