British energy giant BP cuts debt as higher oil prices boost finances

Petrol and diesel pumps at a BP station in Cranbrook, south-east England, on October 13, 2026. — AFP pic

First Published: Wednesday, 14 Oct 2026 11:09 AM MYT

LONDON, Oct 14 — British energy giant BP reported yesterday that it had slashed its debt pile as the US-Iran war pushes up oil and gas prices.

In a trading update ahead of its third-quarter earnings later this month, BP also announced higher refining margins but said it would take a sizeable write-down on its clean energy operations.

The company, which before the start of the Middle East conflict began pivoting back to its core oil and gas business, added that it would set out a new strategy in December.

BP said net debt at the end of the third quarter was expected to be US$13.5 to US$14.5 billion, down from US$22.3 billion in the second quarter.

It had previously targeted a debt reduction to between US$14 billion to US$18 billion by the end of next year.

BP added in its update that it would write down the value of its clean energy businesses by a further US$3.0 billion to US$4.5 billion.

The group’s share price gained 1.3 per cent in early London trading following the update.

“BP shares rose as its... trading statement revealed it is making progress on the balance sheet as it profits from higher oil and gas prices,” said Neil Wilson, an investor strategist at Saxo UK.

Its full quarterly results are due on October 30, ahead of a strategy day in New York on December 15.

Meg O’Neill, who took over as chief executive in April, said in August that the company had underperformed in recent years against a background of turmoil at BP.

The group in September made Ian Tyler its permanent chairman after he stepped into the role following the sudden removal of Albert Manifold over alleged governance concerns.

Amid the internal unrest, BP faced a shareholder backlash at its annual meeting in April, with investors rejecting a resolution that would have reduced its climate reporting requirements.

Its British rival Shell last week revealed that its refining margins — the difference between the cost of turning crude into fuels and what the fuels sell for — reached record highs in the third quarter as the Middle East and Ukraine wars hit supplies. — AFP