BP reported a sharp rebound in profitability for the first quarter of 2026, supported by stronger margins and improved performance across several business segments, even as parts of its upstream operations have weakened.
The British oil and gas major posted net profit attributable to shareholders of US$3.8 billion for the three months to 31 March, representing a surge of 453.1 per cent compared with US$687 million in the same period last year.
The result marks a significant turnaround from the fourth quarter of 2025, when the company recorded a net loss of US$3.4 billion.
Sales and other operating revenue rose by 11.5 per cent to US$52.3 billion, up from US$46.9 billion in the first quarter of 2025.
Underlying replacement cost profit, a key industry measure, increased by 128.6 per cent to US$3.2 billion, driven largely by stronger realised margins, although partially offset by weaker price realisations.
Operating cash flow showed modest growth, rising 1.1 per cent year-on-year to US$2.86 billion.
Performance across BP’s segments was mixed.
The gas and low-carbon energy division recorded a replacement cost profit before interest and tax of US$1.05 billion, a reversal from a loss of US$1.35 billion a year earlier.
The customers and products segment also delivered a strong improvement, with profit climbing to US$2.45 billion from just US$103 million, supported by higher refining margins and increased throughput.
In contrast, the oil production and operations segment saw profit decline to US$1.65 billion from US$2.78 billion in the same quarter last year, reflecting weaker upstream conditions.
BP reported production of 1.54 million barrels of oil equivalent per day, up 4.5 per cent year-on-year, with underlying production rising 5.9 per cent.
Growth was largely attributed to the performance of its US-based bpx Energy business.
Looking ahead, the company expects upstream production to decline in the second quarter due to seasonal maintenance in the Gulf of Mexico and disruptions in the Middle East.
In its customers’ business, higher seasonal demand is anticipated to be offset by weaker midstream results, while fuel margins are expected to remain sensitive to geopolitical developments.
Refining throughput is also likely to be affected by planned turnaround activities, with margins influenced by supply costs.
BP maintained its capital expenditure guidance for 2026 at between US$13 billion and US$13.5 billion, with spending expected to be evenly distributed throughout the year.
The quarter also included several operational milestones.
In February, Aker BP began production from the Solveig phase two development in the North Sea, in which BP holds a 15.9 per cent stake.
The company also confirmed an oil discovery at the Algaita-01 exploration well offshore Angola through its Azule Energy joint venture, and announced the start-up of the Ndungu full-field project, part of the Agogo Integrated West Hub.
In March, BP secured the highest bids on three blocks in the BBG-2 Gulf of Mexico lease sale.
Chief executive Meg O’Neill indicated that the company is focused on strengthening its balance sheet, simplifying operations, and improving returns while leveraging its portfolio to drive future growth.
