BP has reignited the debate over energy profits after reporting its strongest quarterly earnings in four years, with the oil giant benefiting from market turmoil during the Middle East conflict even as critics accused it of profiting from global instability.
The FTSE 100 group said its preferred measure of profitability — underlying replacement cost profit — jumped 78 per cent to $5.7 billion (£4.2 billion) in the second quarter of 2026, sharply exceeding analyst expectations. The surge was driven largely by stronger refining margins and trading gains as energy markets were shaken by the Iran war.
The results place BP alongside rivals including Shell and ExxonMobil, which have also reported improved earnings following the sharp volatility in oil and gas markets. But the windfall has intensified scrutiny from campaigners, who argue energy companies are benefiting from crises that have pushed up household costs.
Friends of the Earth accused BP of profiting from a worsening climate emergency, while the End Fuel Poverty Coalition said millions of households continued to face financial pressure despite record returns for major energy producers.
At the same time, BP’s new chief executive Meg O’Neill is moving aggressively to reshape the company, signalling a retreat from parts of its previous renewable energy strategy. The company confirmed plans to sell its US renewable natural gas business Archaea as part of a wider effort to dispose of non-core assets and improve returns.
The overhaul follows a period of shareholder frustration over BP’s performance, with investors demanding stronger discipline and higher profitability. Last week, the company announced it was seeking a buyer for its UK North Sea operations after six decades of production.
Ms O’Neill said BP had failed to deliver consistently for shareholders and needed urgent action to rebuild confidence.
“We are not making the most of our potential,” she said, warning that the company’s costs, liabilities and previous investments had not been resilient enough in a lower-price environment.
The challenge now facing BP is balancing investor demands for higher returns with growing political pressure over climate commitments — a tension likely to define the next phase of its transformation.
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