BP profit surges; announces selling of $4bn US biogas business

Global energy conglomerate BP has announced plans to sell its USD 4 billion biogas business in the United States, Archaea, while reporting second-quarter 2026 profits of US$5.73 billion, its highest quarterly earnings since 2022. The company’s adjusted profits more than doubled from the previous quarter, rising 144% and surpassing analyst expectations, driven by higher oil, gas and refined fuel prices amid geopolitical tensions in the Middle East.

Archaea, the largest renewable gas producer in the United States, captures methane from landfill sites and was one of BP’s biggest clean energy investments under former CEO Bernard Looney. The acquisition reflected the company’s earlier strategy to expand its renewable energy portfolio. However, the business failed to generate the expected returns, prompting BP to write down its value by US$4.2 billion in 2025 across its biogas and solar operations, followed by a further US$1.1 billion impairment in the latest quarter.

BP CEO Meg O’Neill took charge in April 2026. She held that BP is reviewing its portfolio to prioritise businesses that strengthen cash flow and shareholder returns. She noted that assets once considered strategically important may no longer fit the company’s future direction. O’Neill described her first months as CEO as one of the most challenging periods for global energy markets but praised BP’s workforce for maintaining reliable energy supplies despite ongoing market disruption.

The sale of Archaea is part of a broader restructuring programme. BP has recently agreed to sell its UK North Sea business, divested its Austrian fuel station network, exited its stake in Canada’s Bay du Nord project and shut its venture capital arm.

As per the announcement, the company has also focused on reducing debt, reporting a US$7 billion decline in financial obligations during the quarter and targeting net debt below US$18 billion by the end of 2026, a year ahead of schedule.