BP Earnings Jump as Oil Traders Get Boost From Iran War — Update

By Adam Whittaker

BP's quarterly earnings more than doubled as its oil traders capitalized on market volatility triggered by the conflict in the Middle East.

Tuesday's first-quarter results are the first for CEO Meg O'Neill since she took charge of the British energy major to lead its turnaround. It is also the company's first since the conflict in the Middle East upended global energy markets and sent oil-and-gas prices soaring.

The British oil major reported an underlying replacement cost profit--a similar metric to net income that U.S. oil companies report--of $3.2 billion for the first three months of the year. This compares with the $1.54 billion it reported in the fourth quarter and the $2.67 billion analysts had expected, according to a company compiled consensus.

BP's customers and products division, which houses its oil trading unit, reported quarterly earnings of $2.5 billion, compared with $1.4 billion in the prior quarter, amid major oil-price swings. BP doesn't break out its trading performance when publishing results but the company described its oil unit's performance as "exceptional."

BP is simplifying its portfolio and selling some assets in a bid to improve profitability. The war-induced price rises have come at an opportune moment for the company, which is also trying to slash its bloated net debt. A $20 billion divestment program through 2027 will do much of the heavy lifting but higher free cash flow could enable BP to pay down its debt quicker than previously anticipated.

At the end of the first quarter, net debt rose to $25.3 billion from $22.2 billion at the end of last year--an increase that was distorted by a working capital build caused by the price environment, BP said earlier this month.

O'Neill--who joined from Australia's Woodside Energy earlier this month--is yet to set out her vision for the company. Her remarks at last week's annual general meeting centered on accelerating the delivery of its simplification strategy, under which BP is growing oil-and-gas production while cutting spending on renewable sources of energy.

Its foray into green energy saw it pay peak prices for assets that have failed to deliver promised returns. The sense of urgency to change its strategy heightened when activist investor Elliott Investment Management disclosed a 5% stake early last year.

The strategy reset has been accompanied by leadership changes, with BP appointing Chairman Albert Manifold last year.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

April 28, 2026 02:52 ET (06:52 GMT)