BP (NYSE:BP) on Friday projected higher oil output and strong trading performance for the second quarter, though weaker price realizations across key upstream segments are expected to weigh on earnings.

Shares rose 2.2% following the update.

Q2 Highlights: Production Up, Pricing Down

BP's upstream production increased quarter-on-quarter, driven by:

• Higher volumes from bpx energy in the U.S.

• Slightly higher output in the gas and low-carbon energy segment

However, gas and low-carbon energy realizations declined by $0.1B-$0.3B, while the oil production and operations segment saw a sharper drop of $0.6B-$0.8B, primarily due to unfavorable pricing in the U.S. and UAE.

To track BP's segment-wise performance and price impact on revenue, the Revenue Product Segmentation API offers detailed breakdowns by business vertical and geography.

Refining & Trading Stronger

BP's downstream segment saw strength from:

• Seasonal volume increases

• Refining margin improvements, contributing $0.3B-$0.5B

• A strong oil trading environment

The company's refining marker margin rose to $21.10/bbl in Q2 from $15.20/bbl in Q1. However, Brent crude prices slipped to $67.88/bbl from $75.73, while Henry Hub natural gas fell to $3.44/mmBtu from $3.71/mmBtu.

For real-time and historical crude oil, gas, and refined product benchmarks, the Commodities API enables detailed price monitoring across major global indices.

Financial Outlook

• Net debt expected to be slightly lower QoQ

• Post-tax adjusting items forecast at $0.5B-$1.5B, excluded from underlying profit

• Capital expenditure guidance unchanged at ~$14.5B

• Divestment proceeds of $3B-$4B remain on track for H2

• Gulf of Mexico spill payments expected at $1.2B pre-tax, with $1.1B in Q2

• Effective tax rate around 40%

Bottom Line

Despite pressure from regional pricing differentials and weaker realizations, BP's operational performance and refining margins present a resilient earnings backdrop for Q2. With strong oil trading and stable capex, investor focus now shifts to execution in H2 as divestments and cost discipline take center stage.