BP.US Q3 profits soar to 18-year high: Refining business becomes 'money-printing machine', CEO's reforms encounter strong tailwind

According to Jinse Finance, boosted by soaring refining margins, BP's quarterly profit has surged to its highest level in 18 years, providing strong support for CEO Meg O'Neill's reform of the British energy giant. BP announced in a statement on Friday that third quarter adjusted net profit was $8.46 billion, compared to $2.21 billion year-on-year, far surpassing the market's previous expectation of $7.3 billion. More than half of the profits came from the segment that includes refining and trading operations. The company’s net debt fell significantly.

Refining business contributes more than half of profits; net debt falls more than expected

This is O'Neill’s second full quarter at the helm of BP. As BP’s first externally appointed CEO, O'Neill has made operational performance a priority. She is currently cutting costs, selling assets, repaying debt, and preparing to announce the company's long-term strategy in December.

The company stated that both its oil and natural gas trading businesses performed strongly. This quarter, the indicator for refining margins soared from $29.60 per barrel in the previous quarter to $46.70 per barrel.

The Customers & Products segment, which includes oil trading and refining, generated a profit of $4.8 billion this quarter, compared to $5.3 billion for the full year 2025 in that segment.

Net debt fell sharply from $22.3 billion three months ago to $13.87 billion, achieving the company’s target a year ahead of schedule and exceeding expectations.

Refining business becomes a “money-printing machine”, but BP chooses to prioritize repairing its balance sheet

This round of results comes as European oil giants are benefiting from the cash windfall brought by a refining boom. Wars involving Iran and Russia have disrupted refineries and trade routes, constraining the ability worldwide to convert crude oil into diesel, gasoline, and jet fuel, allowing operating refineries to earn excess profits.

Competitors are announcing large-scale shareholder returns: Shell announced on Thursday it would increase its quarterly share buyback from $3 billion to $5 billion; TotalEnergies pledged to buy back up to $2.5 billion this quarter; Repsol and Eni also raised their buyback amounts.

By contrast, BP paused its share buybacks earlier this year to prioritize debt repayment and improvement of its balance sheet. In this financial report, BP did not announce a new buyback plan.

O'Neill said: “It really was a brilliant quarter for the refining business. The margins at the refineries we operate at BP are very strong, and our overall performance has been exceptionally robust. We successfully seized the opportunities presented by the market.”

O'Neill is currently focused on cutting costs, selling assets, and reducing debt, with plans to announce a long-term strategy in December. The market is watching to see whether the new CEO can repair the balance sheet while also finding new growth paths for BP.