What Did BP Earn in Q1 and Q2 2026?
By the first half of 2026, BP was having a very good year.
In Q1, the company earned $3.2 billion in underlying profit. That more than doubled the $1.4 billion it made in Q1 2025.
Then Q2 arrived and topped even that with $5.7 billion.
Together, the two quarters added up to roughly $8.54 billion for the first half.
Together, the first two quarters of 2026 stacked up to a striking $8.54 billion for BP.
BP also beat analyst expectations both times.
Q2 earnings per share hit $2.22, above what experts predicted.
Higher oil prices, stronger refining margins, and smart trading all helped BP stack up those impressive numbers. Analysts currently project BP’s full year 2026 EPS at $2.63.
BP also plans to redeem EUR 2.5B of perpetual hybrid bonds in Q2 without replacement.
Fixed-income investors often use laddering strategies to manage interest-rate and reinvestment risk.
How the Iran War Pushed Oil Prices Past $100?
When the Iran war broke out, oil markets reacted the way a crowd reacts to a fire alarm — fast and loud.
Brent crude shot past $100 a barrel and briefly hit $119.50.
Traders were not just worried about oil already lost.
They feared the whole Middle East could spiral into chaos.
Iran also threatened the Strait of Hormuz — a narrow waterway carrying enormous amounts of the world’s oil.
Blocking it even briefly sends prices flying.
Eventually fears cooled and Brent dropped back below $73.
But those wild swings handed BP an extraordinary profit window.
Iraq, the United Arab Emirates, and Kuwait also cut production, tightening global supply further as the crisis deepened.
Following a Memorandum of Understanding signed on 17 June, 284 vessels transited the Strait of Hormuz in the days after the deal, a sharp rise from the pre-conflict average of around 138 crossings each day.
Major brokers and exchanges provided regulatory protections that helped stabilize trading conditions during the volatility.
Why Did BP’s Oil Trading Profits Go Through the Roof?
The Iran war did not just push oil prices higher — it turned BP’s trading desk into a money machine.
When markets get wild and prices swing hard, traders can lock in big profits fast.
Think of it like buying concert tickets cheap and selling them when demand explodes.
BP called its oil trading performance “exceptional.”
Its customers and products division earned around $2.5 billion in one quarter alone.
That compared to just $103 million a year earlier.
Wider spreads between buying and selling prices helped too.
Better refining margins added even more.
Everything lined up perfectly for BP’s traders. The Strait of Hormuz, which normally carries 20% of global supplies of oil and liquid natural gas, was effectively closed.
The benchmark oil price surged to a record $119.50 a barrel in March as the crisis deepened.
Commodities like oil are especially sensitive to supply and demand shifts, which amplified traders’ opportunities.
How Do BP’s Gains Compare to Other Oil Giants?
BP had a great quarter, but how did it stack up against the other oil giants? Honestly, BP looked more like the kid who aced a test while the rest of the class scored even higher.
ExxonMobil earned $14.5 billion — nearly four times BP’s $3.91 billion. Chevron pulled in $12.0 billion and Shell grabbed $9.8 billion. Even TotalEnergies beat BP with $6.0 billion.
Together, these five majors earned around $47 billion. BP’s gains were real and impressive. The top five international oil majors combined generated nearly $70 billion in free cash flow during the quarter, a record high.
But among this group, BP was still the smallest earner — improving fast yet not leading the pack. The eight major oil companies combined reported over $27 billion in quarterly profits across this results season.
Brokers often act as financial advisors and can help investors interpret these kinds of corporate earnings and market trends.
Could BP Face a Windfall Tax Again?
With profits more than doubling, BP might seem like it has little to worry about. But the UK’s windfall tax is still very much alive.
BP’s profits may have soared, but the UK’s windfall tax isn’t finished with them yet.
Here is what to know:
- BP currently pays a 78% combined tax rate on UK oil and gas profits.
- The Energy Profits Levy runs until March 2030.
- The levy rate jumped from 25% to 38% in November 2024.
- The government could raise or extend it again if prices stay high.
The biggest risk is not a surprise new tax. It is the existing one simply refusing to leave. A future replacement, the Oil and Gas Price Mechanism, is also designed to trigger an additional 35% tax rate when oil prices exceed $90 a barrel. Chancellor Rachel Reeves has signaled ending the levy as early as 2027, three years ahead of its current scheduled expiry. Monetary policy changes can also affect oil prices through interest rate movements and currency strength, which in turn influence the likelihood of further fiscal measures.
