BP profit beats expectations at $3.2 billion, driven by Middle East trading boon
BP's First-Quarter Financial Performance Overview
By Stephanie Kelly and Shadia Nasralla
Strong Profit Driven by Oil Trading
LONDON, April 28 (Reuters) - BP on Tuesday posted a first-quarter underlying replacement cost profit, its version of net income, of $3.2 billion, compared with expectations of $2.67 billion in a company-provided poll of analysts and $1.38 billion a year ago.
Exceptional Performance in Customers and Products Business
BP's customers and products business, including its oil trading desk which BP had already flagged as having an exceptionally strong quarter, beat expectations with a $3.2 billion profit before interest and tax, compared with an average analyst estimate of $2.5 billion. The spike in oil prices triggered by the U.S.-Israeli war against Iran has helped European majors reap billions of dollars from the energy supply crunch.
Mixed Results Across Other Business Units
Results at BP's gas and low carbon and oil production and operations units came in slightly below expectations.
Outlook and Financial Position
Future Expectations and Market Sensitivities
BP said fuel margins are expected to "remain sensitive" to the cost of supply and conditions in the Middle East, while it expects 2026 reported upstream production to be lower due to effects of the conflict.
Net Debt and Cash Flow
Net debt rose to $25.3 billion from just over $22 billion in the previous quarter, pushed up by lower operating cash flow, which came to $2.9 billion.
CEO's Statement on Company Direction
"We are heading in the right direction, strengthening the balance sheet and continuing to accelerate delivery," said Meg O'Neill, with Tuesday's results her first as BP CEO after starting in the role in April and becoming its fifth chief executive since 2020.
(Reporting by Stephanie Kelly and Shadia Nasralla; Editing by Kirsten Donovan)
