BP Plc said profit surged to the highest in 18 years as soaring refining margins boosted earnings, while a sharp drop in net debt moved the British energy major closer to a position where it could restart buybacks.
Adjusted net income was $8.46 billion, up from $2.21 billion a year earlier, the London-based giant said in a statement on Friday. More than half the profit came from the unit that includes oil refining and trading.
The results are Chief Executive Officer Meg O’Neill’s second full quarter at the helm and offer a fresh look at the operational performance that she’s identified as a priority. BP’s first outsider CEO is cutting costs, selling assets and paying down debt while preparing to lay out her longer-term strategy for the firm in December.
“It really was a banner quarter for the refining business,” she said in an interview with Bloomberg TV. “We had very strong margins from the BP-operated refineries, we also had very strong underlying performance. We were able to capture the opportunity provided by the market.”
Net debt tumbled to $13.87 billion from $22.3 billion just three months earlier, surpassing the company’s target a year ahead of schedule. The rapid improvement in BP’s balance sheet gives O’Neill more room to consider shareholder returns after the company suspended buybacks earlier this year to prioritize paying down debt.
BP made no new announcement about share repurchases on Friday. Still, the collapse in net debt removes a key constraint on distributions at a time when surging refining profits are showering the industry with cash.
The profit surge comes amid a refining boom that’s showering Europe’s oil giants with cash, spurring BP’s rivals to announce jumbo payouts to investors.
Wars involving Iran and Russia have knocked out or disrupted oil refineries and trade routes, squeezing the world’s capacity to turn crude into diesel, gasoline and jet fuel. That’s driving up prices for consumers while handing outsized profits to plants that remain operational.
On Thursday, rival Shell Plc announced it was increasing its quarterly share buyback to $5 billion from $3 billion after its refining margins surged and earnings climbed to their highest since the aftermath of Russia’s full-scale invasion of Ukraine. TotalEnergies SE has pledged as much as $2.5 billion of repurchases this quarter, while Repsol SA and Eni SpA have also boosted their buybacks.
The company’s adjusted net income beat the $7.3 billion average analyst estimate compiled by Bloomberg. BP said oil and gas trading operations both performed strongly. It was the highest since the third quarter of 2008.
BP’s major’s refining margin indicator surged to $46.70 a barrel during the quarter from $29.60 in the previous period.
The company’s Customer and Products unit, where oil trading and refining sit, made $4.8 billion in the quarter. It made $5.3 billion in all of 2025.
BP expects oil and gas production to fall slightly in the fourth quarter due to continued Middle East disruption and other impacts elsewhere.
“Every division came in ahead of consensus expectations, supported by some solid operational indicators in the upstream and downstream, as well as another strong quarter for the trading business,” RBC analyst Biraj Borkhataria said in a note on Friday.
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