BP posts highest quarterly profit in 18 years
BP posted a record quarterly net profit on Friday, beating expectations as the Iran war boosted energy prices and refining margins. The results follow high earnings from Shell and TotalEnergies, which also beat quarterly profit expectations on Thursday and chose to raise share buybacks with their cash. BP reported third-quarter underlying replacement cost profit – its version of net income – of…
BP has reported its highest quarterly profit in 18 years, driven by the Iran war-fueled rise in energy prices and improved refining margins. The company's underlying replacement cost profit reached $8.46 billion, surpassing analysts' expectations of $7.33 billion. BP's operating cash flow amounted to $14.8 billion, while net debt fell to $13.9 billion, allowing the company to meet its net debt target ahead of schedule.
This milestone marks a significant step in BP's turnaround plan, following a strategic reset in 2025. Chief executive Meg O'Neill, who is in her second full quarter leading the company, highlighted strong refining margins and performance. BP shares rose 1.2% in early trade, outpacing a 0.1% increase for European energy companies.
The company plans to use part of its surplus cash to settle remaining liabilities from the 2010 Deepwater Horizon disaster, while also paying down debt. All three business units beat expectations, with the customer and products division delivering the strongest performance. BP's refining indicator margin increased to $46.7 per barrel, and the company recorded $4 billion in impairments, mainly related to its solar unit Lightsource BP and other low-carbon ventures.
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