Embattled BP beats on earnings as it touts selling oil, not cups of coffee, as Wall Street pokes fun at its former CEO

·Big OilEmbattled BP beats on earnings as it touts selling oil, not cups of coffee, as Wall Street pokes fun at its former CEOBy Jordan BlumBy Jordan BlumEditor, EnergyJordan BlumEditor, EnergyJordan Blum is the Energy editor at Fortune, overseeing coverage of a growing global energy sector for oil and gas, transition es, renewables, and critical minerals.SEE FULL BIO "We now plan to fundamentally reset our strategy and drive further imvements in performance," chief executive Murray Auchincloss said ing the earnings .MARK FELIX/AFP via Getty ImagesEmbattled BP returned to fitability and beat earnings expectations for the first time since announcing its “fundamental reset” early this year away from renewables and back toward fossil fuels, offering encouragement its long-term viability

With a nearly 30% beat on its second-quarter net fits of $1.63 billion announced Aug. 5, BP’s net income spiked from a year-on-year loss of $129 million, which compares to BP’s full-year net fit for 2024 of just $381 million

Kathleen Brooks, re director for the XTB brokerage house, called the results a “significant milestone for the company as it returns to fit.” “BP is much less interested in telling the public the number of coffees it sells each year and is now focused on how much oil it can extract,” Brooks said in a note, poking at former CEO Bernard Looney

Looney, who resigned in 2023 amid issues of undisclosed personal relations with employees, would routinely tout that BP service stations sell more than 150 million cups of coffee a year. “We may be much better known on the high street for selling fuel, but we also sell a lot of coffee,” he said in 2020

Current CEO Murray Auchincloss made no such references to bean-sourced beverages. “We remain relentless in our aim to der imvements right across BP,” Auchincloss said in the earnings call. “BP can and will do better for its investors.” With new chairman Albert Manifold stepping into the role Oct. 1, Auchincloss said he is “initiating a further cost review” of its portfolio with the incoming chair

And talk has dissipated for now of Shell potentially buying rival BP

Best foot forward RBC Capital analyst Biraj Borkhataria said in a note that BP is back on its “front foot” but is still in the “early stages of its turnaround journey” as its focuses on imving debt reduction and free cash flow

He expects to see more asset sales and stronger capex shifts toward oil and gas duction

BP said it has achieved $1.7 billion in structural cost reductions, in line to meet or exceed the goal of $4 billion to $5 billion by the end of 2027

In the world of crude oil, BP said it made its biggest discovery this century offshore of Brazil in the Bumerangue block, although the announcement was short on details

BP called the find its 10th discovery of the year, including other oil and gas exploration successes in Brazil, Trinidad, Egypt, Libya, Namibia, Angola, and the U.S

In the past, BP embraced the energy transition, pledging to invest more in renewables while shrinking its oil and gas portfolio and eventually achieving “net zero.” But those goals came ahead of the pandemic and then Russia’s invasion of Ukraine, sending oil and gas prices higher and boosting the emphasis on global energy security

BP continued to lag behind its peers and is now playing catch up

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