BP profits hit 3-year high amid Iran war
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The news: BP reported first-quarter profits above analyst forecasts and more than double achieved during the same period last year, as the oil major’s traders capitalised on volatility spurred on by the war in the Middle East.
The numbers: The company reported adjusted profit of USD3.2 billion for the first three months of the year. The figure is up from the USD1.38 billion it reported in the same period in 2025, and above the USD2.67 billion expected by analysts.
Underlying profits from BP’s customers and products division, where its oil trading unit is housed, reported Q1 earnings of USD2.5 billion, up from USD1.4 billion during the fourth quarter.
The context: The jump in training profit stems from significant volatility in the sector, prompted by the war in Iran and ensuing closure of the Strait of Hormuz, which allowed traders to benefits from larger spreads, more arbitrage opportunities and demand for hedging from customers.
The company said it plans to prioritise balance-sheet repair over reinstating share repurchases, paying down debt and reducing its perpetual hybrid bonds. It said its USD4.3 billion perpetual hybrid bond reduction has been made possible as a result of “continued balance sheet strengthening and the receipt of cash from our divestment programme”.
CEO Meg O’Neil, who joined from Woodside Energy earlier this month, said: We are heading in the right direction, strengthening the balance sheet and continuing to accelerate delivery. Now, we have to capitalize on the opportunity that exists across our portfolio, simplifying how we work, unlocking growth and driving improved returns. That is how we will make bp a simpler, stronger, more valuable company.”
The sources: BP results, FT, Bloomberg
