BP Q1 profit beats expectations amid surge in oil and gas prices

(Sharecast News) - BP posted a better-than-expected first-quarter profit on Tuesday as the oil giant benefited from a surge in oil and gas prices due to the Iran war. Underlying replacement cost profit - BP's preferred measure - came in at $3.2bn in the first three months of the year, up from $1.4bn in the same quarter a year earlier, and from $1.5bn in the final quarter of 2025. This was ahead of analysts' expectations of $2.6bn.

BP said the underlying result reflects "exceptional" oil trading contribution and stronger midstream performance.

Profit attributable to shareholders was $3.8bn in the first quarter, up from $687m in the same period a year earlier and versus a loss of $3.4bn in the fourth quarter of 2025.

Looking ahead, the oil company expects second-quarter reported upstream production to be lower than the first quarter due to seasonal maintenance predominantly in the Gulf of America and the effects of disruption in the Middle East.

It also said volumes and fuel margins were likely to remain sensitive to conditions and developments in the Middle East.

Chief executive Meg O'Neill said: "This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets. We had high plant reliability, high refining availability and increased production in the Gulf of America and at bpx Energy, our US onshore business - keeping production levels steady despite the ongoing disruption.

"We also made progress on sustainability, continuing to embed it in the way we work and building on the 37% reduction in operational emissions last year, compared to our 2019 baseline. We are committed to doing business the right way: providing secure, affordable energy - and doing it sustainably.

"BP is a great company, with highly skilled people and world-class assets. We are heading in the right direction, strengthening the balance sheet and continuing to accelerate delivery. Now, we have to capitalise on the opportunity that exists across our portfolio, simplifying how we work, unlocking growth and driving improved returns."

At 0810 BST, the shares were up 2.8% at 588.20p.

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