BP PLC (LSE:BP.) returned to profit in the first quarter, helped by stronger trading and refining as oil prices surged and then fluctuated wildly in the aftermath of the Iran war.
The oil giant reported profit attributable to shareholders was $3.8 billion, compared with a loss of $3.4 billion in the previous quarter and a $687 million profit a year ago.
Underlying replacement cost profit, its preferred measure, leapt to $3.2 billion from $1.5 billion, reflecting stronger oil trading and midstream performance.
New CEO Meg O'Neill said: "We are heading in the right direction, strengthening the balance sheet and continuing to accelerate delivery. Now, we have to capitalize on the opportunity that exists across our portfolio, simplifying how we work, unlocking growth and driving improved returns.
"That is how we will make BP a simpler, stronger, more valuable company."
Looking ahead, the board expects a weaker second quarter, with upstream production lower due to maintenance and Middle East disruption, with refining throughput due to be slowed by turnaround activity.
For 2026, output is seen broadly flat compared to last year, with margins and earnings sensitive to oil prices, supply costs and geopolitical uncertainty.
The dividend was maintained at 8.320 cents per share, with O'Neill reiterating plans to reduce net debt to between $14 billion and $18 billion by 2027.
Net debt ended the quarter at $25.3 billion, up from $22.2 billion at the end of 2025, driven mainly by lower cash generation.
Operating cash flow was $2.9 billion, after capital expenditure of $3.3 billion.
Operationally, upstream plant reliability improved to 95.7%, while refining availability reached 96.3%, above the company’s 96% target. Production was broadly flat, with higher output in the Gulf of America and from its US onshore unit offsetting disruption in the Middle East and a North Sea disposal.
In its segments, customers and products delivered a sharp rise in profit, supported by higher refining margins and what the group described as exceptional oil trading.