BP profits hit highest since 2023 as Iran war delivers windfall

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BP’s profits surged to their highest since 2023 in the first quarter, blowing past expectations, as its oil traders capitalised on the volatility sparked by the Iran war.

The UK energy major on Tuesday reported adjusted profit of $3.2bn for the first quarter, above the $2.7bn forecast by analysts and the $1.38bn it made in the first three months of 2025.

In its first set of results since Meg O’Neill took over as chief executive this month, BP hailed the “exceptional” performance of its oil trading division.

Underlying profits at the refining and trading division soared to $2.2bn in the first three months of this year from $469mn in the same period last year.

Traders typically benefit from volatility because sharp price swings create larger spreads between buyers and sellers, more opportunities for arbitrage and also demand for hedging from customers such as utilities and airlines.

Brent crude, the international oil benchmark, soared from less than $60 a barrel at the start of the year to as high as $119 as its peak during the eight-week conflict as Iran brought traffic through the Strait of Hormuz to a near-halt and attacked energy facilities across the Gulf.

On Tuesday, Brent hit $110 a barrel for the first time since early April as the US and Iran appeared to make little progress towards a peace deal.

O’Neil said BP had been “working relentlessly” to maintain reliable production and was helping countries “get fuel where it is needed” to minimise disruption from the conflict.

BP added that it was monitoring the impact of the war on its production facilities in Abu Dhabi, Oman and Iraq, which together produce about 309,000 barrels of crude a day.

The London-listed company said that it expected that its full-year oil and gas production to be lower, without giving details.

Its debt, which is closely watched by investors, rose by $3.1bn to $25.3bn in the first quarter, as operating cash flow dipped and its operating costs rose 46 per cent to $7.2bn.

BP said it was sticking to a pledge to reduce its net debt to between $14bn and $18bn by the end of the year.