By Brian Swint

BP said that second-quarter profit took a hit from lower crude prices, becoming the latest oil major to issue such a warning. But the stock rose anyway Friday.

The company, which has lagged behind rivals, said in a trading update that profits in its oil unit will be between $600 million and $800 million lower in the second quarter than in the previous one. Earnings in the gas and low-carbon unit will be down as much as $300 million.

But there were also bright spots in the statement, which comes ahead of official second-quarter earnings on Aug. 5. Production of oil and gas is now expected to be higher, and the company expects debt levels to be lower. It also expects strong results from its oil trading unit.

Lower commodity prices affect all energy companies, and BP was seen as more vulnerable than others in the sector because of its relatively high debt load. BP, which has attracted interest from activist investor Elliott Management is also racing to focus more on its traditional oil and gas business as part of a strategy unveiled by CEO Murray Auchincloss earlier this year.

Cross-town London rival Shell said earlier this week that its profits from gas trading would be weaker as well. Exxon also warned that its profits would be hit by lower crude prices as well.

BP's American depositary receipts added 2.1% in premarket trading Friday. Shell fell 0.4%. Exxon, the biggest U.S. oil company, was down 0.5%, and as was rival Chevron.

Big oil stocks often move in line with crude prices, but that wasn't the case today. West Texas Intermediate, the U.S. benchmark, rose 1% to $67.22 a barrel.

Write to Brian Swint at brian.swint@barrons.com

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July 11, 2025 08:18 ET (12:18 GMT)

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