The group had announced in mid-April that it expected to benefit from rising oil prices, noting that the price of Brent North Sea crude, the international benchmark, averaged US$81.13 a barrel in the first quarter, up from US$63.73 in the fourth quarter of last year.
Oil prices have been volatile because of the war, coming close to US$120 a barrel in March, which BP traders were able to profit from.
“Traders do best in periods of volatility as sharp swings in the price create gaps between buyers and sellers … and greater hedging demand from industries like the airline sector,” A.J. Bell head of markets, Dan Coatsworth said.
“The highest quarterly profit in the best part of three years is not a bad way for new BP CEO Meg O’Neill to begin her tenure.”
BP shares were up 3% on Tuesday by midday (local time) on the London Stock Exchange.
Meg O’Neill aims to reorganise BP, focusing on simplifying operations and improving returns. Photo / Getty Images
The company said in mid-April that each US$1 variation in the price of a barrel has a US$340 million impact on its annual operating profit before tax.
BP “has been working relentlessly to keep our assets producing safely, reliably and efficiently” while working “in an environment of conflict and complexity”, O’Neill said.
The American CEO took up her post in early April, with a mission of implementing a recovery plan for the struggling group, whose profit after tax in 2025 plunged 86% year-on-year to US$55m.
‘Simpler, stronger’
BP’s performance has generally fallen behind that of its rivals in recent years, and last year the company mounted a boardroom shake-up after slashing clean energy investment and pivoting back to its more profitable oil and gas business.
O’Neill plans to reorganise the company, clearly separating its upstream and downstream activities.
Her aim is to make BP “a simpler, stronger, more valuable company”, she said.
“Now, we have to capitalise on the opportunity that exists across our portfolio, simplifying how we work, unlocking growth and driving improved returns.”
The new CEO faced a stinging rebuke from shareholders last week at the annual general meeting, as they largely rejected two board proposals as a step backwards on transparency, particularly concerning climate strategy.
One proposal aimed to revoke two resolutions adopted at previous general meetings, which required BP to publish certain climate-related information.
The other was intended to authorise holding shareholder meetings exclusively online.
BP chairman Albert Manifold, who took office on October 1, faced a personal rebuke, with around 18% of shareholders voting against his election.
– Agence France-Presse