BP Q1 profit beats expectations at US$3.2 billion, driven by Middle East trading boon

[LONDON] BP on Tuesday (Apr 28) posted a first-quarter underlying replacement cost profit, its version of net income, of US$3.2 billion.

This was higher than expectations of US$2.67 billion in a company-provided poll of analysts and US$1.38 billion from the year-ago period.

Its customers and products business – including its oil trading desk which it had already flagged as having an exceptionally strong quarter – beat expectations with a US$3.2 billion profit before interest and tax, compared with an average analyst estimate of US$2.5 billion.

The spike in oil prices – which was triggered by the US-Israel war against Iran – has helped European majors reap billions from the energy-supply crunch.

Results at BP’s gas and low carbon unit, as well as its oil production and operations division, came in slightly below expectations.

The company said that fuel margins are expected to “remain sensitive” to the cost of supply and conditions in the Middle East, while it anticipates 2026 reported upstream production to be lower due to the effects of the conflict.

SEE ALSO

BP’s new CEO starts in latest bid to revive embattled oil giant

BP says oil trading result is ‘exceptional’ as prices soared amid Middle East war

BP chairman overcomes shareholder backlash to win first election

BP gains on Exxon to emerge as top big-oil stock during Iran war

More

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Net debt rose to US$25.3 billion from just over US$22 billion in the previous quarter, pushed up by lower operating cash flow, which came to US$2.9 billion.

BP CEO Meg O’Neill said: “We are heading in the right direction, strengthening the balance sheet and continuing to accelerate delivery.”

Tuesday’s results are her first as CEO of the company, after starting in the role in April and becoming its fifth in the position since 2020. REUTERS