The company said it intended to sell Archaea Energy, a business that converts landfill waste into renewable natural gas, as part of a broad restructuring ordered by Chief Executive Meg O’Neill.
Archaea was acquired by BP in 2022 in a transaction valued at $4.1 billion. At the time, the purchase was presented as a major move into renewable fuels, reflecting expectations of rising demand for lower-carbon energy.
The company said underlying replacement cost profit, a measure used by BP that is broadly comparable to net income reported by American oil companies, rose to $5.73 billion in the quarter from $2.35 billion a year earlier.
BP said the gain reflected stronger trading results, higher energy prices and better margins in refining. Oil companies have benefited from volatility in energy markets linked to the war involving Iran, which has raised prices and widened trading opportunities.
The net debt fell to $22.25 billion at the end of the second quarter from $25.31 billion at the close of the first quarter.
O’Neill said the improvement was not sufficient.
“We have not delivered consistently; we have written off too much value; and our costs and liabilities are not resilient enough in a low price environment,” she said.
The announcement came after the company confirmed plans to leave the North Sea oil and gas business, ending decades of production activity in its home market.
O’Neill, said, “The UK has been our home for more than 100 years and will continue to play an important role in our future. We’re proud of the jobs we create, the contribution we make to the UK economy, and the work we do to keep energy flowing every day.
“The North Sea remains integral to the UK's energy system. However, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company. It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter. We are seeking an outcome that recognizes that value.”
No buyer for Archaea was announced. BP did not give a timetable for a sale.
