Updated version 2-BP reports the highest net profit in at least five years

The background of the “Deepwater Horizon” incident, net profit milestones, business segment data, and share price information have been reorganized

Stephanie Kelly/Shadia Nasralla

Reuters London, October 30 - BP (BP.L) on Friday reported its highest quarterly profits in at least five years, exceeding market expectations—driven by the Iran war boosting energy prices and refining margins—and said it will use the windfall to pay down the remaining debt from the “Deepwater Horizon” disaster.

The British oil giant reported underlying replacement cost profit (its definition of net profit) of $8.46 billion for the third quarter. Analyst surveys provided by the company had forecast $7.33 billion, while in the same period last year it was $2.2 billion.

BP’s figures show this is its highest quarterly profit since 2021.

Operating cash flow reached $14.8 billion, and net debt fell to $13.9 billion, allowing BP to achieve its net debt target one year ahead of schedule.

This milestone marks another key step in BP’s business transformation after it reshaped its strategy in 2025 following setbacks in its push into renewables.

“Against a backdrop of higher oil prices, improved margins, and good progress in performance improvement across segments, we delivered a strong result,” Chief Executive Meg O'Neill said in a statement.

BP’s share price rose 1.3% in early trading.

The US-Israel war with Iran (link) has driven up oil and fuel prices and boosted refining margins, raising questions over how oil majors will deploy the extra cash generated by the industry.

BP said it will use some of the surplus cash to settle the remaining liabilities from the 2010 “Deepwater Horizon” disaster. The incident, one of the worst environmental disasters in US history, claimed the lives of 11 oil rig workers. According to BP, outstanding payments and provisions related to the “Deepwater Horizon” incident total $5.94 billion.

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All three of BP’s business segments exceeded expectations. The customer and products division performed best, posting pre-tax profits of $6.95 billion, ahead of analyst expectations of $6.3 billion and up sharply from $1.72 billion a year earlier.

This quarter, BP’s refining marker margin rose to $46.7 per barrel, up from $29.6 per barrel in the second quarter and $15.8 per barrel in the same period last year.

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