BP has announced new plans for a cost-cutting scheme and a “thorough review” of the company’s portfolio, despite reporting better-than-expected profits in its Q2 results.

The oil and gas giant posted earnings that topped estimates on the back of strong trading results and robust cash flow, while its net debt decreased.

BP posted an increase in profits to $2.35bn for the three months between April and June, a decline of 15% on the same period in 2024 when the group had benefited from higher oil and gas prices, although the latest figure did represent an increase on the $1.38bn it reported for Q1.

The latest results also comes as BP announced earlier this week it had made its largest oil and gas discovery of the past 25 years, located in waters off the coast of Brazil.

CEO, Murray Auchincloss, said: “This has been another strong quarter for BP operationally and strategically. We are delivering on our plan to grow the upstream and focus the downstream with reliability across both at >96%.

“So far this year we've brought five new oil and gas major projects onstream, sanctioned four more and made 10 exploration discoveries, including the significant discovery in Bumerangue block in Brazil. Underlying earnings in our customers business are up around 50% compared to a year ago and trading has delivered well quarter-on-quarter during challenging conditions.”

Auchincloss also revealed that he had been in discussions with chair elect, Albert Manifold, over a “thorough review” of the BP portfolio, to ensure the company is “maximising shareholder value”.

He said that BP would be initiating a further cost review and that BP was reaffirming a commitment to ensure there is an “embedded process of continuous business improvement” across its operations.

AJ Bell investment director, Russ Mould, commented that the reaction to BP’s announcement had been “fairly muted”.

“Combined with the major oil discovery in Brazil announced earlier in the week, it helps to convince that the company is serious about its renewed commitment to hydrocarbons,” Mould added.

“Despite already announcing a round of significant cost cutting, further efficiencies will be sought. At present, BP still has a modestly larger workforce than Shell – based on the companies’ respective last reported headcounts – despite being a significantly smaller business in terms of its valuation and annual revenue.

“Separately, the company may get questions on whether or not the planned programme of disposals will be put on hold while this new review takes place.”

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