British energy giant BP has reported first-quarter underlying profits of US$3.2 billion, more than doubling its performance from the previous period.
The result was driven by what the company described as an exceptional oil trading contribution and a bounce-back in refining availability. BP’s net profit for the first quarter of 2025 came in at US$1.38 billion and US$1.54 billion in the last quarter of 2025.
“This has been another strong quarter for bp despite a lot of external volatility. Our operations continue to perform well, we have kept momentum going in our financial performance and are headed in the right direction,” said BP CEO Meg O’Neill during the company’s earnings presentation.
The company reported a lift in operational efficiency across its global portfolio. Upstream plant reliability improved to 95.7 per cent, while refining availability reached 96.3 per cent, surpassing the firm’s internal targets.
Despite the divestment of North Sea assets at the end of last year and disruptions in the Middle East, total production remained broadly flat. This was supported by increased output from the Gulf of America and strong performance within the bpx Energy shale business.
In a move to simplify its portfolio and lower overheads, BP announced an agreement to sell its Gelsenkirchen refinery in March. Following the completion of this transaction, the company’s structural cost-reduction target will be increased by $1 billion, aiming for total savings of US$6.5 billion to US$7.5 billion by 2027.
O’Neill emphasised a shift toward a leaner financial frame. Subject to market conditions, BP now plans to reduce its corporate hybrid bond financing by roughly $4.3 billion, bringing the total down to approximately $9 billion by the end of next year.
“We need to continue to strengthen the balance sheet and remain disciplined in our spending and our investment – and in doing so, build a more resilient bp,” she said.
Operating cash flow for the quarter stood at US$2.9 billion. This figure reflects a significant $6 billion in working capital, largely driven by seasonal inventory requirements and a rising price environment that lengthened shipping routes globally.
Net debt rose to US$25.3 billion, up from $22.2 billion at the end of 2025, primarily due to lower operating cash flow resulting from the working capital build.
However, the company reiterated its commitment to strengthening the balance sheet, maintaining a net debt target of US$14 billion to US$18 billion by the end of 2027.
BP also reiterated its capital expenditure budget of US$13 billion to US$13.5 billion.
Looking ahead, BP expects its reported upstream production for 2026 to be lower compared to the first three months of the year due to the effects of the Middle East conflict.
