BP CEO O’Neill denies breakup talks as profit hits record

BP ↗ 0.08% Chief Executive Meg O'Neill said on Friday, October 30, that she could "categorically" deny any conversations about breaking up the British energy group. She was responding to a report that some board members favor splitting the company. O'Neill made the comments on the conference call for BP's third-quarter results. She said her talks with the board about strategy "reaffirm the imperative" of an integrated oil and gas company, with upstream and downstream businesses under one roof.reuters.com+1

The denial came on the same day BP reported its strongest quarterly profit under its current measure. That leaves O'Neill making the case for keeping the company whole while it is generating plenty of cash.

What Semafor reported

On Wednesday, October 28, Semafor reported in an exclusive that some board members of the $129 billion company favor a breakup, citing people familiar with the matter. According to the report, the idea came after years of smaller spinoffs failed to ease investor pressure for better returns. It also said no decision had been made, the full board had not formally discussed a breakup, and O'Neill appeared to be opposed. A BP spokesperson told the outlet at the time: "This is categorically false".semafor.com

A profit surge

BP's third-quarter underlying replacement cost profit, its version of net income, nearly quadrupled from a year earlier to $8.5 billion. That beat analyst expectations, helped by higher refining margins and stronger gas marketing and trading. It was the highest quarterly profit BP has posted under the current version of that measure. Net debt fell to $13.9 billion, so the company reached its debt target a year ahead of schedule.cnbc.com+1

The quarter also included $4 billion of post-tax impairments, mainly tied to transition businesses such as Lightsource bp and offshore wind. BP said it now expects about $8 billion in divestment proceeds for 2026, including roughly $6 billion from the planned sale of Castrol.finance.yahoo.com+1

Strategy update ahead

BP has scheduled a strategy update for December 15 under O'Neill. That will be the next chance for investors to see whether the board and management agree on how the company should be structured. The company has also said further strengthening of its balance sheet remains its top priority.perplexity.ai+1