Brent crude averaged $81/bbl in Q1, up 27% quarter-over-quarter… New CEO O'Neill kicks off structural overhaul
UK energy major BP reported Q1 2026 results on the 28th (local time), with after-tax profit surging 453% to $3.8 billion compared to $687 million in the same period last year. Underlying profit — the market's key benchmark — more than doubled to $3.2 billion from $1.4 billion a year earlier. The blowout results reflect BP's crude trading division aggressively capitalizing on oil price spikes triggered by the Iran war.
These results reflect an exceptional oil trading contribution.
BP Q1 2026 Earnings Release
Oil Price Spike Maximizes Trading Gains
The surge in earnings was directly driven by oil price volatility. The U.S.-Israeli airstrike on Iran on February 28 sparked a conflict that sent Brent crude soaring close to $120 per barrel in March, creating extreme price swings throughout the quarter. BP captured substantial gains through its trading positions during this period of heightened volatility.
BP's average realized Brent crude price for Q1 was $81.13 per barrel, up 27% from $63.73 in the prior quarter. The company has previously disclosed that every $1 per barrel move in oil prices impacts annual pre-tax operating profit by approximately $340 million.
New CEO Mac O'Neill Targets a 'Simpler, Stronger' BP
This marks the first official earnings release since Mac O'Neill took the helm as CEO. O'Neill, who assumed the role in early April replacing former CEO Murray Auchincloss, has been tasked with executing BP's turnaround plan.
The business is performing well — we have delivered strong operational and financial results, with further progress toward our 2027 targets. We will make BP a simpler, stronger, and more valuable company.
He is pursuing a structural reorganization that clearly separates upstream and downstream operations. BP had already been underperforming peers, with 2025 after-tax profit collapsing 86% year-over-year to just $55 million. Last year, the company overhauled its board, sharply scaled back clean energy investments, and pivoted back toward an oil-and-gas-focused strategy.
Shareholder Pushback Persists
Strong earnings aside, shareholder tensions remain elevated. At last week's annual general meeting, investors voted down two board-sponsored resolutions. One sought to rescind a climate-related disclosure obligation passed at a prior AGM; the other proposed allowing shareholder meetings to be held exclusively online.
Board Chairman Albert Manifold also faced personal headwinds, receiving an approximately 18% vote against his re-election. The results underscore that accumulated shareholder frustration over BP's retreat from its climate strategy remains very much in play, even against the backdrop of a strong earnings report.
