BP sells green unit as profits soar

By Brittany Hayes 05/08/2026 2 min read 14 views

BP announced it will put its U.S. biogas subsidiary on the market, adding to a series of divestitures aimed at reshaping the energy giant’s portfolio under chief executive Meg O’Neill.

Quarterly earnings lift profit expectations

The company reported underlying replacement cost profit of $5.7 billion for the second quarter, beating analysts’ consensus of roughly $5.1 billion. Higher prices for crude oil, natural gas and refined fuels helped lift earnings, a trend linked to the ongoing conflict involving Iran.

BP’s earnings release noted that the stronger price environment offset an impairment charge tied to its low‑carbon assets, which followed larger write‑downs in its renewable‑energy holdings last year.

Archaea Energy sale signals shift away from underperforming renewables

BP said it intends to sell Archaea Energy, a U.S. renewable natural gas producer it bought in 2022 for about $4 billion. Archaea captures methane from landfills and upgrades it to renewable natural gas, but the business has not delivered the returns the firm anticipated.

In an interview with CNBC, O’Neill acknowledged that some investments fell short of the company’s return targets and that the portfolio is being reviewed to redirect capital toward higher‑performing operations.

The proposed sale follows earlier moves that include an agreement to offload the U.K. North Sea business, the exit from an Austrian retail fuel network, the divestment of BP’s stake in Canada’s Bay du Nord offshore project, and the shutdown of its venture‑capital arm.

BP also recorded another impairment related to that segment during the quarter, echoing the sizable write‑downs it took on renewable assets in the previous year.

Analysts have been watching the new leadership team’s ability to improve financial results after criticism that BP’s energy‑transition strategy had weighed on shareholder returns. Biraj Borkhataria of RBC Capital Markets said the latest numbers show progress but emphasized the need for clearer evidence that the firm can execute its strategic plan.

Reducing debt remains a central focus. BP reported that its combined financial obligations—including net debt, hybrid bonds and remaining Deepwater Horizon settlement payments—declined by about $7 billion in the quarter.

The market will watch the sale closely.

The firm now expects net debt to fall below $18 billion by year‑end, an achievement slated for roughly a year earlier than previously projected.

O’Neill added that BP has received unsolicited interest in its North Sea assets from multiple parties, while reaffirming support for continued oil and gas production in the region, noting the United Kingdom’s reliance on fossil fuels.

BP’s robust quarter mirrors results across the energy sector; Saudi Aramco, for example, posted an adjusted second‑quarter profit of $33.4 billion, a 33 % increase from a year earlier, also driven by stronger commodity prices.