BP on Friday reported a third-quarter underlying profit of $8.5bn, nearly quadruple the $2.2bn earned a year earlier, as soaring refining margins driven by Middle East conflict and global refinery disruptions boosted earnings. The result far exceeded analyst forecasts and triggered criticism from climate groups.
The oil major said the jump in profits 'mainly reflects significantly higher realised refining margins and significantly higher gas and marketing trading result'. Operating cash flow reached $28.55bn in the first nine months of the year, up from $16.89bn in 2025, while net debt fell to $13.87bn from $26.05bn.
The surge comes as global conflicts, including the war in the Middle East and the Russia-Ukraine war, have disrupted refineries, pushed fuel prices higher and created tightness in global fuel markets. Rivals Shell and TotalEnergies this week also reported historically high refining margins.
BP chief executive Meg O'Neill described the quarter's $46.7-a-barrel refining indicator margin as 'incredibly strong' but told CNBC that margins are beginning to soften as fourth-quarter demand typically drops off. 'We've been able to adapt and try to adjust our refining runs to meet the needs for the product that is most in demand,' she said.
O'Neill said BP is focused on strengthening its balance sheet to give shareholders confidence they can be rewarded through the cycle, and intends to ringfence extra cash to address remaining liabilities from the 2010 Deepwater Horizon oil spill. Deepwater Horizon oil spill payables and provisions stood at $5.94bn, according to BP data. 'We will not forget the 11 men who lost their lives, or the impact that we had on the Gulf Coast and the environment there,' she said. 'We want to take care of those financial obligations going forward to ensure we're a more resilient company in future years.'
The windfall drew criticism from climate campaigners. Danny Gross of Friends of the Earth said: 'As millions of households brace themselves for a cold winter huddling under blankets and clutching hot-water bottles as they struggle to pay their bills, BP is raking in huge profits while doubling down on gas and oil production and slashing investment in renewables.'
BP is expected to set out its first major strategy update under O'Neill on 15 December, which market observers expect will outline plans to grow oil and gas production and potentially restart share buybacks from next year.
Analysis
Why This Matters
- BP's profit surge shows how geopolitical conflicts and refinery disruptions directly impact global fuel prices, contributing to cost-of-living pressures for households.
- The company's decision to focus on oil and gas and reduce renewable investment signals a shift in energy transition momentum, with implications for climate goals.
- The planned use of windfall to pay down Deepwater Horizon liabilities addresses a legacy environmental disaster but also raises questions about corporate accountability for long-term damages.
Background
BP announced a new strategy last year that sees the energy giant pivot back towards its traditional oil and gas operations and away from renewables. The Deepwater Horizon oil spill in 2010 resulted in billions of dollars in liabilities, which the company continues to pay down. Global energy markets have been shaped by high volatility due to the Russia-Ukraine war and the Middle East conflict, driving up fuel prices.
Key Perspectives
BP: CEO Meg O'Neill said the company is using the windfall to strengthen its balance sheet and reward shareholders through the cycle, while prioritising the settlement of remaining Deepwater Horizon obligations.
Friends of the Earth: Climate campaigner Danny Gross accused BP of profiting from the crisis while households struggle with high bills and the company cuts renewable investment.
What to Watch
- BP's strategy update on 15 December, expected to detail oil and gas expansion plans and potential resumption of share buybacks.
- Whether refining margins continue to decline in the fourth quarter as demand softens, and how that affects future earnings.
- Potential regulatory or political backlash against oil majors' windfall profits amid a global cost-of-living crisis.
Checked
12 claims in this story checked against 2 sources: 11 supported.
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- SupportedBP reported third-quarter underlying profit of $8.5bn, nearly quadruple the $2.2bn earned a year earlier.US Top News and Analysis: “The company reported $8.5 billion in underlying replacement cost profit, used as a proxy for net profit. That was above the $6.191 billion forecast by analysts in an LSEG-compiled consensus and up from $2.2 billion a year ago .”
- SupportedHigher refining margins driven by Middle East conflict and refinery disruptions boosted BP’s earnings.UK news | The Guardian: “BP has posted a jump in its quarterly profits as the war in the Middle East drove up oil and gas prices and led to “significantly higher” trading.”
- SupportedBP’s result far exceeded analyst forecasts.US Top News and Analysis: “That was above the $6.191 billion forecast by analysts in an LSEG-compiled consensus”
- SupportedBP said the profit jump mainly reflected higher refining margins and gas and marketing trading results.UK news | The Guardian: “The company said the jump in profits “mainly reflects significantly higher realised refining margins and significantly higher gas and marketing trading result”.”
- SupportedOperating cash flow reached $28.55bn in the first nine months, up from $16.89bn in 2025.US Top News and Analysis: “Operating cash flow hit $28.55 billion across the first nine months of the year, up from $16.89 billion in 2025”
- SupportedNet debt fell to $13.87bn from $26.05bn.US Top News and Analysis: “while net debt fell to $13.87 billion from $26.05 billion across the same period.”
- SupportedO’Neill described BP’s $46.7-a-barrel refining indicator margin as “incredibly strong” and said margins were softening as fourth-quarter demand typically drops off.US Top News and Analysis: “BP CEO O'Neill told CNBC's "Squawk Box Europe" on Friday that BP's refining indicator margin for the quarter of $46.7 a barrel was "incredibly strong"”
- Partly supportedO’Neill said, “We've been able to adapt and try to adjust our refining runs to meet the needs for the product that is most in demand.”US Top News and Analysis: “"We've been able to adapt and try to adjust our refining runs to meet... the needs for the product that is most in demand," she said.”
- SupportedBP will use excess cash to address its remaining Deepwater Horizon liabilities, which stood at $5.94bn.UK news | The Guardian: “BP said on Friday it would use the excess cashflow generated by earnings to address remaining liabilities in full from the Deepwater Horizon oil spill in 2010. Deepwater Horizon oil spill payables and provisions stood at $5.94bn, according to BP data.”
- SupportedO’Neill said BP would not forget the 11 men who died or the impact of the spill on the Gulf Coast and environment.US Top News and Analysis: “"We will not forget the 11 men who lost their lives, or the impact that we had on the Gulf Coast and the environment there," she said.”
- SupportedDanny Gross of Friends of the Earth criticised BP’s profits, saying households faced a cold winter and BP was doubling down on oil and gas while slashing renewable investment.UK news | The Guardian: “Danny Gross, of Friends of the Earth, said: “As millions of households brace themselves for a cold winter huddling under blankets and clutching hot-water bottles as they struggle to pay their bills, BP is raking in huge profits while doubling down on gas and oil production and slashing investment in renewables.””
- SupportedBP is expected to give its first major strategy update under O’Neill on 15 December; observers expect it to outline plans to grow oil and gas production and potentially restart share buybacks next year.UK news | The Guardian: “BP is expected to set out its first major strategy update under O’Neill on 15 December, which market observers expect will outline the company’s plans to grow its oil and gas production and potentially restart share buybacks from next year.”
