BP profits double in boost for new boss as oil price hits $112 per barrel for first time since March

The new boss of BP insisted the energy giant is ‘heading in the right direction’ after an ‘exceptional’ performance in its oil trading arm drove its best results for three years.

As the price of oil rose back above $112 a barrel for the first time since the end of March, BP posted profits of £2.4billion for the first three months of the year.

That was more than double the £1billion made in the same period last year and its biggest quarterly haul since 2023 – sparking a furious backlash from critics, including the Energy Secretary Ed Miliband.

The profits bonanza was driven by its oil traders cashing in as the war in the Middle East sent crude prices soaring following the closure of the Strait of Hormuz.

BP shares closed up 1.1 per cent, or 6.4p, at 578.8p, taking gains for the year to 31.3 per cent.

The results are an early boost for Meg O’Neill, who became the first female chief executive in BP’s 117-year history when she took over this month.

‘The highest quarterly profit in the best part of three years is not a bad way for O’Neill to begin her tenure,’ said Dan Coatsworth of broker AJ Bell.

He added: ‘Circumstances have helped but, as Napoleon famously attested, there’s no harm in being a lucky general.’

But even if O’Neill manages to win over the City by turning BP around, she is set to face a rough ride in Westminster with Miliband declaring: ‘Profiting from a crisis is morally and economically wrong. That’s why we’re taxing these windfall profits to help fund support with the cost of living.’

BP declined to respond directly to Miliband’s comments. But O’Neill described further windfall taxes as a ‘highly flawed response’ to the Iran crisis.

She added: ‘BP’s team has been working relentlessly to keep our assets producing safely, reliably and efficiently. We are working with customers and governments to get fuel where it’s needed.’

O’Neill is set to ramp up investment in oil and gas as she pivots back towards fossil fuels after an ill-fated foray into renewables under predecessors Bernard Looney and Murray Auchincloss.

But while BP is benefiting from the higher oil price – crude averaged $81.13 a barrel in the first quarter compared to $63.73 in the fourth quarter of last year – the company warned underlying oil and gas production will be flat this year due to disruption in the Middle East.

BP said it continues to ‘closely monitor’ the impact of the war on its oil production facilities in Abu Dhabi and Iraq, as well as its oil and gas operations in Oman.

O’Neill said she has joined BP ‘at a time when our industry is operating in an environment of conflict and complexity’ while also ‘playing a vital role in keeping energy flowing’.

She added: ‘Overall, our business continues to run well. This was another quarter of strong operational and financial delivery. We are heading in the right direction, strengthening the balance sheet and continuing to accelerate delivery.

‘Now, we have to capitalise 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.’