British energy giant BP reported a sharp increase in third-quarter 2026 profits as the ongoing Iran war disrupted global energy supplies, pushed refining margins higher and created favourable trading conditions. The company also significantly reduced its debt, reaching its financial target a year ahead of schedule.

For the July–September quarter, BP's underlying replacement cost profit, its preferred measure of adjusted earnings, reached $8.46 billion, compared with $2.2 billion in the same period last year. The result comfortably exceeded analysts' expectations of $7.33 billion.

Profit attributable to BP shareholders also quadrupled to $4.7 billion from $1.16 billion a year earlier.

Iran War Drives Refining and Trading Profits

Disruptions to oil and fuel supplies across the Middle East have tightened global energy markets, benefiting refineries operating outside the affected areas. With regional exports constrained and some facilities disrupted, refining companies have gained from stronger margins between crude oil costs and the prices of finished fuels such as diesel and petrol.

BP said significantly higher realised refining margins and stronger gas and marketing trading results were the main contributors to its improved performance.

The conflict has also increased volatility in international oil and gas markets, creating additional trading opportunities for major energy companies. However, these conditions remain closely linked to geopolitical developments and could change as supply routes and production recover.

BP Cuts Net Debt by $8.4 Billion

Alongside its profit growth, BP made significant progress in strengthening its balance sheet. Net debt declined to $13.9 billion at the end of September, down from $22.3 billion in the previous quarter.

The $8.4 billion reduction allowed the company to achieve its debt-reduction target approximately one year earlier than planned. Operating cash flow reached $14.8 billion during the quarter, providing additional financial flexibility.

BP maintained its quarterly dividend at 8.66 cents per share. The company also indicated that surplus cash would be directed towards further debt reduction and settling its remaining liabilities related to the 2010 Deepwater Horizon oil spill.

New CEO Prepares Long-Term Strategy

Chief Executive Meg O'Neill, who took over leadership in April 2026, described the results as strong, supported by a higher-price and higher-margin environment. She is expected to present BP's updated long-term strategy on December 15.

The company has already reduced investment in some low-carbon businesses and shifted greater attention towards its more profitable oil and gas operations. BP also recorded approximately $4 billion in impairments during the quarter, largely associated with energy-transition businesses.

The latest results strengthen BP's financial position, but the company still faces uncertainty surrounding energy prices, geopolitical tensions and the long-term direction of the global energy market.

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