(April 28): BP plc said earnings jumped in the first quarter as the Iran war led to a surge in profits from its oil trading operation and spiralling energy prices.
Adjusted net income more than doubled from a year earlier to US$3.2 billion, the London-based company said in an earnings statement Tuesday. Net debt, a closely watched metric, rose about 14%.
BP, which already signposted that oil trading was "exceptional", has benefited from surging oil prices while escaping the scale of production cuts that some of its rivals suffered in the Middle East, where it has a relatively smaller asset base. The company’s traders handle cargoes from the company’s own operations as well as those of third parties around the world.
The rising profits provide new CEO Meg O’Neill with a tailwind as she confronts the need to reduce debt, streamline BP’s structure and unwind unsuccessful bets on low-carbon ventures.
In March, the first month of the conflict, Brent oil futures rose by 43%.
Strong production performance from BP’s assets in the Gulf of Mexico and US shale offset disruptions in the Middle East, BP said.
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