British oil giant BP announced a sharp rise in first-quarter profits on Tuesday, driven by its oil trading activity, which benefited from the volatility of oil prices in the context of the Middle East war.
The group’s net profit stands at $3.842 billion for the quarter, compared to $687 million a year earlier.
The underlying profit (excluding exceptional items), closely watched by the markets, also saw a strong increase to $3.198 billion, compared to $1.381 billion the previous year, a figure that “reflects an exceptional contribution from oil trading,” the statement highlighted.
“This quarter was marked by solid operational and financial performance, and we continued to make progress towards our goals,” said Meg O’Neill, the new CEO, appointed at the end of 2025 to replace Murray Auchincloss.
“BP’s teams are working tirelessly to ensure that our assets continue to produce safely, reliably, and efficiently,” added the American executive, despite “an environment marked by conflicts.”
– Recovery Plan –
The group had announced in mid-April that it expected to benefit from the rise in oil prices, noting that on average in the first three months of the year, the price of a barrel of Brent, the international reference, reached $81.13, compared to an average of $63.73 in the fourth quarter.
But beyond this increase, oil also fluctuated significantly based on war developments, even reaching close to $120 a barrel in March, which BP traders were able to capitalize on.
“Traders perform best in times of volatility when significant price fluctuations create gaps between buyers and sellers, arbitrage opportunities, and increased demand for hedging from sectors such as airlines,” explained Dan Coatsworth, an analyst at AJ Bell.
This allowed BP to record its “highest quarterly profit in over three years,” surpassing analyst forecasts, he added.
BP’s stock price was up more than 3% on Tuesday mid-morning on the London Stock Exchange.
Meg O’Neill, who took office in early April, is tasked with implementing the group’s recovery plan after its 2025 profit plunged by 86% to $55 million.
BP’s performance has generally lagged behind that of its rivals in recent years, and the company initiated a significant internal restructuring last year after focusing too heavily on an ambitious climate strategy at the expense of hydrocarbons.
– “Simpler, Stronger” –
Ms. O’Neill plans to reorganize the company by clearly separating its upstream and downstream activities — prospecting and extraction on one hand, and refining and marketing on the other.
The goal is to “make BP a simpler, stronger, and more value-creating company,” the group explained in mid-April.
“Now we must fully capitalize on the opportunities offered by our entire portfolio, simplify our way of working, unleash growth, and improve our returns,” Ms. O’Neill emphasized in her statement.
Just weeks into her role, the new leader had to confront a significant backlash last week during the company’s annual general meeting as shareholders widely rejected two proposals seen as a setback for transparency, particularly regarding its climate strategy.
The first aimed to revoke two previously adopted resolutions requiring BP to disclose certain climate-related information. The other was to allow shareholder meetings exclusively online.
BP’s Chairman, Albert Manifold, who has been in office since October 1, also faced a personal rebuke, with over 18% of votes cast against his re-election resolution.
