Global energy major BP has reported a significant rise in first-quarter earnings, with profits more than doubling to $3.2bn (£2.4bn), buoyed by a surge in oil prices triggered by escalating conflict in the Middle East.
The results, covering January to March, mark the company’s first financial update since the outbreak of the Iran war, which has disrupted global energy flows and driven crude prices sharply higher. The performance exceeded analyst expectations and compares with $1.38 billion recorded in the same period last year.
The standout performer was BP’s trading operation. Within its customers and products division, profits surged to $2.5 billion from just $103 million a year earlier, as traders capitalised on price swings and disruptions across global energy markets.
Benchmark Brent crude has climbed to about $110 per barrel, up from $73 before the conflict began in late February. The escalation has effectively constrained flows through the strategically critical Strait of Hormuz, through which around a fifth of the world’s oil and liquefied natural gas typically passes.
Newly appointed chief executive Meg O’Neill, who assumed leadership in April following the departure of Murray Auchincloss, acknowledged the challenging backdrop.
She noted the company had entered “a time when our industry is operating in an environment of conflict and complexity,” adding that BP was working closely with governments and customers to maintain supply and minimise disruption.
Despite the strong trading performance, BP signalled caution for the months ahead. Upstream production remained flat during the quarter, and the company warned output could decline in the second quarter due to ongoing instability in the Middle East.
Analysts echoed the guarded outlook. Charles Hall, head of research at Peel Hunt, said while trading gains may persist in the near term, broader uncertainty could weigh on performance. “It’s a pretty uncertain world at the moment,” he said, pointing to geopolitical risks and operational disruptions.
The bumper profits have reignited criticism from environmental groups, who argue that energy majors are benefiting disproportionately from global crises. Mike Childs of Friends of the Earth said the results mirror patterns seen during previous geopolitical shocks, where rising fuel prices boost corporate earnings while increasing pressure on households.
The latest rise in wholesale energy prices is expected to feed into consumer costs in the UK. While the energy price cap currently shields households, projections indicate a potential £200 increase in average annual bills when it is reviewed in July.
BP’s exposure to the UK windfall tax regime remains limited, with the company noting that less than 10 per cent of its global profits are generated from UK oil and gas production, the segment subject to the levy.
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