BP refinery in Lingen, Germany (aerial view by drone).
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British energy major blood pressure The company’s first-quarter profit more than doubled from a year earlier, as oil and gas prices soared due to the Middle East conflict, according to a report on Tuesday.
The oil giant posted an underlying replacement cost profit, used as a proxy for net income, of $3.2 billion in the first three months of the year. That comfortably beat analysts’ expectations of $2.63 billion, according to consensus compiled by LSEG.
The company said its first quarter results reflected an “unusual” contribution from crude oil trading and strong midstream performance. BP’s net profit was $1.54 billion in the last three months of 2025, up $1.38 billion from the same period last year.
BP CEO Meg O’Neill said in a statement: “Overall, our business continues to perform well. This was another strong quarter, both operationally and financially, and we made further progress towards our 2027 goals.”
BP’s gains come as fossil fuel prices have soared and oil and gas companies have experienced significant stock price increases since the U.S. and Israel’s war against Iran began on February 28.
Continued and severe disruptions through the strategically important Strait of Hormuz have resulted in what the International Energy Agency describes as the greatest energy security threat in history.
BP stock rose 2.5% in morning trading. London-listed stocks have rebounded this year, rising more than 32%. This means BP is in second place after French stocks. total energy One of the top five oil supermajors.
Citi analysts said the first statements from BP’s new chief executive showed a “clear emphasis on financial deleveraging and reducing the cost of debt.”
BP’s net debt was $25.3 billion at the end of the first quarter, up from $22.18 billion at the end of last year. The company aims to reduce its net debt to $14 billion to $18 billion by the end of next year.
Looking ahead, BP said it expects reported upstream production to be lower compared to the first three months of the year, citing seasonal maintenance and disruption in the Middle East.
The company reaffirmed its 2026 capital expenditure outlook to $13 billion to $13.5 billion, and said it expects sales and other proceeds to be $9 billion to $10 billion over the year.
“BP delivered positive and better-than-expected results even after stimulating the market with a strong quarter,” Maurizio Carulli, global energy analyst at Quilter Cheviot, said in a research note.
He added: “Higher oil prices tend to lift all profits in the energy sector, but BP’s status as an integrated player in the market means that cash flows will be strengthened as oil prices remain high, and these positive outcomes are likely to be prolonged as long as negotiations between the US and Iran remain counterproductive.”
investor revolt
BP’s board was hit by a shareholder revolt at last week’s annual general meeting following a tense clash with investors over corporate governance and climate change transparency.
The company failed to win approval from a majority of its shareholders on two highly anticipated motions: allowing online-only shareholder meetings and reversing company-specific climate change disclosure requirements.
This formed part of a broader investor revolt at the general meeting, resulting in weaker-than-usual support for BP chairman Albert Manifold and strong support for a motion calling on the energy giant to justify capital discipline on oil and gas investments.
