BP misses Q2 profit expectations as weak refining margins, oil price bite

LONDON, July 26 (Reuters) - British oil major BP reported lower-than-expected profit for the second quarter due to weak refining margins and oil prices, prompting another cut to its 2016 investment budget to below $17 billion.

BP reported a second-quarter underlying replacement cost profit, the company's definition of net income, of $720 million, down from $1.3 billion in the same quarter last year and $120 million below an analyst consensus provided by the company.

Its refining margins were the weakest for a second quarter in six years, BP said.

The company said full-year capital expenditure would now come in below the $17 billion target it had previously given. (Reporting by Karolin Schaps, editing by Louise Heavens)