BP sees strong profit growth amid oil price spike

British energy giant BP announced a sharp rise in first-quarter profits on Tuesday, driven by surging crude oil prices amid the ongoing Middle East war, News.Az reports, citing AFP.

Oil prices have climbed since the start of the US–Iran conflict on February 28, with markets experiencing frequent and sharp swings in response to rapidly changing developments in the war.

BP’s profit after tax rose to $3.8 billion for the January–March period, up from $687 million in the same period a year earlier, according to its London-listed earnings statement.

The company’s closely watched underlying profit more than doubled to $3.2 billion from $1.4 billion a year earlier. BP said this increase “reflects exceptional oil trading contribution.”

“Overall, our business continues to run well. This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets,” said CEO Meg O’Neill, who was appointed at the end of last year to replace Murray Auchincloss.

The company had already indicated in mid-April that it expected to benefit from higher oil prices. Brent North Sea crude, the global benchmark, averaged $81.13 per barrel in the first quarter, compared with $63.73 in the previous quarter.

Oil markets have remained highly volatile due to the war, with prices briefly approaching $120 per barrel in March—levels that BP traders were able to capitalize on.

BP noted in mid-April that every $1 change in the price of a barrel affects its annual operating profit before tax by around $340 million.

The company said it continues to operate “safely, reliably and efficiently” in an environment marked by “conflict and complexity,” according to O’Neill.

She took over as CEO in early April with a mandate to revive the company’s performance after BP’s profit after tax plunged 86% year-on-year in 2025 to $55 million.

BP has lagged behind some of its major competitors in recent years. Last year, it underwent a board reshuffle after cutting back on clean energy investments and refocusing on its more profitable oil and gas operations.

O’Neill plans to reorganize BP by clearly separating its upstream and downstream businesses, aiming to make it “a simpler, stronger, more valuable company.”

“Now, we have to capitalise on the opportunity that exists across our portfolio, simplifying how we work, unlocking growth and driving improved returns,” she said.

However, the new CEO faced shareholder criticism at last week’s annual general meeting, where investors rejected two board proposals seen as reducing transparency, particularly around climate strategy.

One proposal sought to overturn two previous resolutions requiring BP to publish certain climate-related disclosures. The other aimed to allow shareholder meetings to be held exclusively online.

BP chairman Albert Manifold, who assumed office on October 1, also faced dissent, with around 18% of shareholders voting against his election.

News.Az 

By Nijat Babayev