BP’s profits more than doubled last quarter, driven by soaring oil prices amid the Iran war.
Underlying replacement cost profit was US$3.20 billion, well above the $1.38 billion it reported one year ago and surpassing LSEG-compiled estimates of $2.63 billion.
“This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets,” said CEO Meg O’Neill.
“We had high plant reliability, high refining availability and increased production in the Gulf of America and at bpx Energy, our U.S. onshore business – keeping production levels steady despite the ongoing disruption.”
Replacement cost profit for its gas and low carbon energy segment was $1.05 billion before interest and tax, down from $1.36 billion one year ago.
Oil production and operations profit dropped from $2.79 billion to $1.66 billion. Customers and products profit surged from $103 million to $2.45 billion, which the company credited to strong midstream profits, higher realised refining margins, and “exceptional” oil trading contributions.
Net debt grew to $25.31 billion, from the December quarter’s $22.18 billion. BP is seeking to cut its debt to $14-18 billion by the end of 2027.
The company “made progress on sustainability” during the quarter, said O’Neill. BP shareholders revolted at its annual general meeting last week after the board blocked a motion requiring it to release business plans under future scenarios of low oil and gas demand, voting to elect Albert Manifold as chair with an unusually low 81.8% majority.
Upstream production last quarter was 2.34 billion barrels of oil equivalent per day, up from 2.24 billion one year ago.
Its second-quarter guidance expects a dip in upstream production due to seasonal maintenance in the Gulf of Mexico and continued disruption amid the Iran war.
BP (LON: BP) shares closed 0.8% higher at UK£576.80. Its market capitalisation is £90.61 billion.
