British Petroleum (bp) has reported underlying replacement cost profit of $8.5 Bn in the third quarter (Q3) of 2026, up from $5.7 Bn in the previous quarter, supported by higher refining margins and stronger gas and marketing trading performance, according to a statement by the company on October 30.

The UK-based energy company’s operating cash flow rose to $14.8 Bn from $10.9 Bn in Q2, while reported profit attributable to shareholders increased to $4.7 Bn from $3.9 Bn.

BP reduced net debt by $8.4 Bn during the quarter to $13.9 Bn, supported by stronger cash generation and its decision to allocate excess cash to strengthen its balance sheet.

Upstream production remained steady at 2.2 mmboe/d, while upstream plant reliability improved to 95.3% from 92.4% in the previous quarter. Refining availability rose to 96.5% from 94.7%, although throughput declined to 1.396 mmb/d from 1.467 mmb/d, partly reflecting the sale of the Gelsenkirchen refinery.

BP CEO Meg O’Neill said the company’s results benefited from higher prices and margins, as well as progress in improving operational performance.

She said the company had achieved its net debt and structural cost-reduction targets and was making progress towards its remaining financial targets for 2027.

The company recorded $4 Bn in impairments during the quarter, largely linked to its energy transition businesses. BP also said it would prioritise using excess cash flow to address its remaining liabilities related to the 2010 Deepwater Horizon disaster.

As part of its portfolio restructuring, BP agreed to sell its Austrian mobility and convenience business, completed the sale of the Gelsenkirchen refinery and announced plans to market its North Sea and Archaea businesses. The company also expects to complete the divestment of Castrol, which it said could unlock $6 Bn to strengthen its balance sheet.

BP said it would outline its longer-term strategy, capital framework and performance targets on December 15.