BP p.l.c. (NYSE:BP) stock is trading lower premarket on Wednesday after the company posted a trading update ahead of its fourth-quarter 2025 results scheduled for February 10, 2026.
BP expects fourth-quarter upstream production to be largely unchanged from the previous quarter, with stable output in oil production and operations offset by lower volumes in gas and low-carbon energy.
In the gas and low-carbon segment, the company projects price realizations to reduce results by approximately $0.1 billion to $0.3 billion quarter over quarter, reflecting shifts in non-Henry Hub natural gas benchmarks. Meanwhile, gas marketing and trading performance is expected to be in line with average levels.
In the oil production and operations segment, quarter-over-quarter price realizations are expected to reduce results by approximately $0.2 billion to $0.4 billion, reflecting price lag effects on BP's production in the Gulf of America and the U.A.E.
In the customers and products segment, BP projects results to reflect seasonally lower volumes and stable fuel margins.
The company sees roughly $0.1 billion in refining margin gains offset by higher turnaround activity, temporary capacity reductions at the Whiting refinery, and weak oil trading performance.
Post-Tax Impairment Charges & Debt
BP expects fourth-quarter results to include post-tax adjusting charges of roughly $4–$5 billion related to impairments, mainly within transition-focused businesses and equity-accounted entities.
These charges largely stem from the gas and low-carbon energy segment.
Net debt at quarter-end is projected at $22–$23 billion, down from $26.1 billion in the third quarter, reflecting roughly $3.5 billion in divestment proceeds during the quarter and about $5.3 billion for the full year.
Brent Trading
Brent crude prices averaged $63.73 per barrel in the fourth quarter of 2025, down from $69.13 per barrel in the third quarter of 2025.
The U.S. Henry Hub first-of-month natural gas price averaged $3.55 per mmBtu in the fourth quarter of 2025, up from $3.07 per mmBtu in the prior quarter.
BP's refining indicator margin (RIM) averaged $15.2 per barrel in the quarter, compared with $15.8 per barrel in the prior quarter.
Corteva Joint Venture & Castrol Sale
This month, BP disclosed a 50:50 joint venture with Corteva, Inc. (NYSE:CTVA) to produce crop-based oils from canola, mustard, and sunflower for sustainable aviation fuel (SAF) and renewable diesel (RD).
Last month, BP streamlined its portfolio by selling a 65% stake in Castrol lubricants business for about $10.1 billion.
The transaction is expected to generate approximately $6 billion in net proceeds for BP.
BP Price Action: Bp shares were down 1.10% at $34.97 during premarket trading on Wednesday, according to Benzinga Pro data.
