28 April 2026
If you are covering BP’s latest financial results, please find below a comment from Maurizio Carulli, global energy analyst at Quilter Cheviot:
“A considerable number of eyes will have been on BP’s results this morning, its first since the outbreak of the Iranian conflict and its flagging of ‘exceptional’ performance earlier this year. Even after priming the market for a good quarter, BP delivered results that were both positive and better of expectations. Shares are up 3% this morning, as a consequence, highlighting just how beneficial the recent energy price spikes have been to the oil and gas companies.
“Naturally, BP was helped by strong oil trading profits as the price spiked off the back of the closure of the Strait of Homruz, as well as by a lower tax rate in the quarter due to the different geographical mix. The company has also improved its downstream reliability, while net debt is higher versus the previous quarter, but this is not of concern because the increase is due to the large accounting effect on working capital of the higher oil price. So, over time, this will revert with beneficial effects on the gearing.
“BP’s recovery story started last year, and its strategic repositioning is being implemented successfully. The new CEO Meg O’Neill has just started in her role and a further acceleration in operational and strategy improvements is expected. Furthermore, within the progressive deleveraging of the balance sheet, we are pleased to see the planned retirement of some hybrid debt, which will help decrease financing costs.
“All in all, BP has found some favourable trading conditions at a good time as it repositions the business and looks to return to growth. Elevated oil prices tend to lift all boats in the energy sector, but being an integrated player in the market means BP will see enhanced cash flow as oil prices remain elevated, and for as long as talks between the US and Iran remain unproductive, these positive outcomes are likely to be prolonged.”
