BP (NYSE:BP) posted first-quarter underlying replacement cost (RC) profit of $3.2 billion, comfortably ahead of the $2.67 billion consensus forecast compiled by the company. The result more than doubled the $1.5 billion achieved in the prior quarter and the $1.38 billion reported in the same period last year.
The strong performance was largely attributed to a standout contribution from oil trading, alongside improved results in the midstream segment, BP said.
Shares gained roughly 3.1% in early London trading at 07:47 GMT following the announcement.
On a statutory basis, profit reached $3.8 billion, a sharp reversal from the $3.4 billion loss recorded in the fourth quarter.
The group reported upstream production of 2.33 million barrels of oil equivalent per day, with plant reliability at 95.7% for the period.
Jefferies analyst Mark Wilson noted that BP delivered “inline results better at net income due to lower tax rate.”
Operating cash flow totaled $2.9 billion after a $6 billion working capital outflow, while capital spending declined to $3.3 billion from $3.6 billion a year earlier. Net debt rose to $25.3 billion, compared with $22.2 billion at the end of 2024.
The company left its quarterly dividend unchanged at 8.32 cents per ordinary share.
“This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets,” said BP CEO Meg O’Neill, who joined the company earlier this month.
“We had high plant reliability, high refining availability and increased production in the Gulf of America and at bpx Energy, our U.S. onshore business – keeping production levels steady despite the ongoing disruption,” she said in the statement.
Looking forward, BP indicated that upstream output is likely to be lower in the second quarter, citing seasonal maintenance in the Gulf of America and continued disruption in the Middle East.
The group reiterated its full-year capital expenditure plan of $13 billion to $13.5 billion and expects to generate $9 billion to $10 billion from asset disposals, with the bulk anticipated in the second half, including proceeds from the planned sale of Castrol.