Oil & Gas

BP plc reported a sharp rise in its first-quarter earnings, with profit more than doubling compared to the same period last year. The increase was driven by higher oil prices and a surge in oil trading activity linked to the conflict in the Middle East. The company posted an underlying replacement cost profit of $3.2 billion, significantly above both last year’s $1.4 billion and analysts’ expectations of $2.6 billion.

The strong performance was largely attributed to exceptional results from BP’s oil trading operations, along with improved performance in its midstream segment. The company noted that its oil trading outcomes were far stronger than usual, while gas marketing and trading returned to more typical levels after a weaker showing the previous year.

Earlier in the quarter, BP had already indicated that trading results would be unusually strong due to heightened market volatility at the onset of the Middle East conflict. Despite disruptions in some regions and asset sales in the North Sea, the company maintained steady production levels, supported by increased output in the Gulf of America and solid performance from its U.S. shale operations under BPX Energy.

Looking ahead, BP is continuing to expand its presence in U.S. shale, aiming to grow production while keeping capital spending under control. Its BPX Energy division plans to increase output to 500,000 barrels of oil equivalent per day this year and further to 650,000 by the end of the decade, with reduced capital investment. CEO Meg O'Neill highlighted strong operational reliability, high refining capacity, and stable production despite ongoing geopolitical challenges.