British Petroleum (bp) reported a net income of $3.2 billion in the first quarter (Q1) of 2026, an increase of 131.88% from the same quarter last year. It beat analyst expectations of $2.67 billion by 20%, according to Reuters.
This record performance was driven primarily by the customers and products segment, which recorded a profit of $3.2 billion before interest and tax, its highest level since 2022.
“We’re controlling what we can control, which is trying to increase production in other parts of the world,” CEO Meg O’Neill stated in an interview with Reuters. Under O’Neill’s new leadership, bp has stabilized overall production at 2.3 million barrels of oil equivalent per day by increasing output in the United States to offset regional disruptions.
bp reported that it previously exported approximately 100,000 barrels per day (bbl/d) from Iraq and Abu Dhabi, as well as 5% to 10% of its liquefied natural gas (LNG) portfolio, through the now-restricted waterway.
Financially, the company reported a plan to reduce its hybrid bonds, financial instruments that blend debt and equity traits, by approximately $4.3 billion to a total of $9 billion. While the increase in working capital movements led to net debt rising to $25.3 billion from $22 billion in the previous quarter, Royal Bank of Canada (RBC) analysts noted that bp’s priorities are “straightforward,” focusing on debt reduction to put the company on a firmer footing.
The surge in earnings reflects the broader energy supply crunch, with benchmark Brent crude futures averaging $78.38 per barrel during the quarter, up from $74.98 a year earlier. bp cautioned that fuel margins are expected to “remain sensitive” to supply costs and ongoing conditions in the Middle East, while 2026 upstream production may be lower due to the conflict’s persistent effects.
