BP tops Q1 profit expectations as oil trading strength lifts shares

BP (LSE:BP.) reported first-quarter underlying replacement cost (RC) profit of $3.2 billion on Tuesday, exceeding a company-compiled consensus forecast of $2.67 billion. The figure more than doubled both the $1.5 billion recorded in the previous quarter and the $1.38 billion posted a year earlier.

The improvement was largely driven by an outstanding performance in oil trading alongside stronger results from its midstream operations, the company said.

Shares rose around 3.1% by 07:47 GMT in London following the update.

Statutory profit reached $3.8 billion, marking a sharp turnaround from the $3.4 billion loss reported in the fourth quarter.

Upstream production averaged 2.33 million barrels of oil equivalent per day during the quarter, with plant reliability reported at 95.7%.

Reacting to the results, Jefferies analyst Mark Wilson said BP delivered “inline results better at net income due to lower tax rate.”

Operating cash flow came in at $2.9 billion after a $6 billion working capital build, while capital expenditure declined to $3.3 billion from $3.6 billion in the same period last year. Net debt increased to $25.3 billion, up from $22.2 billion at the end of 2024.

BP maintained its quarterly dividend at 8.32 cents per ordinary share.

“This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets,” said BP CEO Meg O’Neill, who joined the company earlier this month.

“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,” she said in the statement.

Looking ahead, BP expects upstream production to decline in the second quarter due to seasonal maintenance in the Gulf of America and continued disruptions in the Middle East.

The company reaffirmed its full-year capital expenditure guidance of $13 billion to $13.5 billion and continues to target $9 billion to $10 billion in divestment proceeds, with most of these expected in the second half, including contributions from the planned sale of Castrol.