BP posted its highest quarterly profit in 18 years on Friday. The war in the Middle East pushed up oil and gas prices and led to "significantly higher" trading, The Guardian reported. Underlying replacement cost profit, a key measure of the company's income, reached $8.46 billion in the three months to the end of September. A year earlier it stood at $2.2 billion. Analysts had expected $7.33 billion. AFP reported that BP's net profit quadrupled on higher oil prices.
It was BP's best result since 2008, when it recorded $8.9 billion, according to The Guardian. Refining drove most of the gain. The gap between the cost of crude oil and the price of refined fuels such as diesel and petrol widened sharply. BP earned almost $47 for each barrel produced. Global oil prices have stayed below their 2022 peaks. Pump prices for diesel, however, have hit all-time highs in the UK, Europe and the US. The Guardian links this to severe disruption at refineries in the Gulf region and across Russia.
Chief executive Meg O'Neill told Bloomberg TV it was "a banner quarter for the refining business". She said BP-operated refineries delivered very strong margins. The company, she added, was able to "capture the opportunity provided by the market".
Climate campaigners criticised the profits. Jonathan Noronha-Gant of Global Witness called it "obscene" that polluters were cashing in on the fallout of the war in Iran "while innocent civilians suffer". Danny Gross of Friends of the Earth said BP was making huge profits while expanding oil and gas production and cutting investment in renewables. Clémence Dubois of 350.org said fossil fuel companies were set for extraordinary profits while governments struggle to protect their populations.
UK motorists face high fuel costs. Diesel stands at 198.79p a litre, according to RAC estimates cited by The Guardian. Petrol averages 172.92p a litre, up from 132.83p in late February, before the latest Middle East conflict began.
BP's results follow strong figures from its rivals. Shell and France's TotalEnergies both reported their highest profits since 2022, also driven largely by refining. The results come just over a week before the Cop31 UN climate summit opens in Antalya, Turkey. Meanwhile, UK energy secretary Miatta Fahnbulleh is deciding whether to allow drilling in the North Sea's Rosebank oilfield.