Energy giant BP rose nearly 3% today after its second-quarter trading update indicated stronger oil trading performance and a reduction in net debt, offsetting weaker upstream production and a $1bn charge related to parts of its energy-transition business.

The FTSE 100 company said upstream production was expected to fall to between 2.17 million and 2.22 million barrels of oil (boe) equivalent a day from 2.34 million in the first quarter, citing seasonal maintenance in the Gulf of America and disruption in the Middle East.

However, higher oil prices were expected to boost upstream earnings by $1.8bn-$2.1bn, while stronger refining margins should add a further $1.2bn-$1.4bn. Oil trading was also expected to be slightly stronger than in the previous quarter, it said.

BP forecast net debt would fall to between $22bn and $23bn from $25.3bn at the end of the first quarter, despite redeeming €2.5bn of hybrid bonds and paying $1.1bn in Gulf of America settlement liabilities.

It also disclosed around $1bn of write-downs in parts of its transition businesses, primarily relating to transition businesses within its gas and low carbon energy division.

The energy group, whose Q1 2026 revenue was around $53.4bm, said higher commodity prices and stronger refining performance would more than offset lower production, adding that total net debt, hybrid bonds and Gulf of America settlement liabilities were expected to fall by around $6.3bn-$7.3bn compared with the first quarter.

BP's results for the second quarter are scheduled to be published on 4 August.

---