London — BP Records $8.46 Billion Quarterly Profit as Iran War Boosts Energy Earnings
British energy giant BP reported third-quarter underlying replacement-cost profit of $8.46 billion, comfortably beating market forecasts as the conflict involving Iran drove oil prices higher and boosted refining margins.
The earnings figure exceeded analysts’ expectations of $7.33 billion and marked a significant improvement from the $2.2 billion reported during the same quarter last year. It also represented the company’s highest quarterly profit under its current reporting measure.
BP generated $14.8 billion in operating cash flow during the three-month period, while net debt fell to $13.9 billion. The improvement allowed the company to meet its debt-reduction target a year earlier than planned.
The latest results represent another milestone in BP’s restructuring following its 2025 strategic reset, which was introduced after an unsuccessful push into renewable energy.
Chief Executive Meg O’Neill said favorable conditions in energy markets, combined with improved performance across the company’s operations, contributed to the strong quarterly outcome.
BP shares rose 1.2% in early trading, outperforming the wider European energy sector, which recorded a 0.1% gain.
Each of BP’s three business divisions performed above expectations. Its customer and products division led the results, generating pretax profit of $6.95 billion, exceeding the average analyst estimate of $6.3 billion. The division had reported earnings of $1.72 billion in the same period a year earlier.
Refining margins also recorded a significant improvement. BP’s refining indicator margin climbed to $46.70 per barrel, up from $29.60 in the second quarter and $15.80 during the corresponding period last year. The company also benefited from stronger performance in gas marketing and trading.
BP plans to direct some of its additional earnings toward paying outstanding liabilities linked to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, a disaster that claimed 11 lives.
The company had previously allocated $69 billion to cover costs associated with the incident. According to its latest disclosures, remaining payables and provisions related to the disaster totaled $5.94 billion.
However, stronger operating performance did not prevent BP from recording $4 billion in impairments during the quarter, mainly involving its energy transition businesses.
The company had also recognized more than $5 billion in write-downs in recent months, primarily related to Archaea, Lightsource BP and other investments in lower-carbon energy.
BP is expected to deliver its next strategic update on December 15.
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