BP's Profits Surge as Oil Traders Capitalize on Middle East Volatility

By Adam Whittaker

BP's oil traders delivered bumper profits again after conflict in the Middle East continued to drive turbulence in energy markets.

The British oil major reported an underlying replacement cost profit--a similar metric to the net income that U.S. oil companies report--of $5.73 billion for the second quarter of the year. This compares with the $3.2 billion it reported in the first quarter and the $5.11 billion analysts had expected, according to a company-compiled consensus.

BP's customers and products division, which houses its oil-trading unit, reported quarterly earnings of $5.1 billion, up from $2.5 billion in the prior quarter. The company doesn't break out its trading performance when publishing results, but described the unit's trading performance as slightly higher than the prior period, which was "exceptional."

The conflict in the Middle East has given BP a cash boost that it is using to shore up its balance sheet. Its commitment to cut net debt has coincided with a stricter approach to spending and a pivot back to its traditional fossil-fuel business.

New Chief Executive Officer Meg O'Neill is reviewing BP's portfolio in a strategic shake-up designed to boost profit and shareholder returns. The company is targeting $20 billion in asset sales by the end of 2027 in a bid to cut its net debt, which stood at $22.25 billion at the end of the quarter.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

August 04, 2026 02:39 ET (06:39 GMT)