BP’s profits have increased by over 130% year-on-year to almost $3.2bn in the first quarter of 2026, following disruptions in the Middle East.

The increase marks the oil and gas firm’s highest quarterly profit for almost three years, after the price of Brent crude jumped from around $73 a barrel to nearly $120, with the current price standing at $110.

BP said its profit increase, which rose by 107% quarter-on-quarter, was a result of "exceptional oil trading" and stronger midstream performance.

Across this period, the firm’s underlying revolving credit profit per ordinary share increased by 136% year-on-year to 20.67 cent per share, while its operating cash flow jumped by almost 1% to $2.86bn.

Furthermore, BP stated that it has continued its strategic progress, following the announced agreement to sell its Gelsenkirchen refinery. On completion of the transaction, its structural cost reduction target will increase by $1bn to between $6.5bn and $7.5bn by 2027.

Chief executive officer at BP, Mg O’Neill, stated: "Overall, our business continues to run well. 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."

In its outlook, BP expects its refining margins to remain sensitive to the cost of supply and conditions in the Middle East.

It also stated that its second quarter reported upstream production to be lower compared with the first quarter, due to the effects of disruption in the Middle East and “seasonal maintenance mainly in the Gulf of America”.

Global energy analyst at Quilter Cheviot, Maurizio Carulli, said that the oil and gas giant's recovery began last year, and its strategic repositioning has been implemented successfully.

He concluded: "O’Neill has just started in her role and a further acceleration in operational and strategy improvements is expected. Furthermore, within the progressive deleveraging of the balance sheet, we are pleased to see the planned retirement of some hybrid debt, which will help decrease financing costs.

"All in all, BP has found some favourable trading conditions at a good time as it repositions the business and looks to return to growth. Elevated oil prices tend to lift all boats in the energy sector, but being an integrated player in the market means BP will see enhanced cash flow as oil prices remain elevated, and for as long as talks between the US and Iran remain unproductive, these positive outcomes are likely to be prolonged."

---