British energy major BP reported on Tuesday that its net profit more than doubled in the second quarter, as the ongoing conflict in the Middle East continued to roil global oil and gas markets. The company's profit after tax surged to $3.91 billion (€3.38 billion) for the April–June period, up from $1.62 billion (€1.40 billion) in the same quarter of 2025, according to its earnings statement.
The sharp year-on-year increase reflects a period of heightened volatility in fossil fuel prices, driven by the US–Iran conflict. BP's total revenue rose 47% to $70 billion (€60.43 billion) compared with a year earlier, as supply disruptions and geopolitical tensions kept energy markets on edge.
The five largest Western energy majors—BP, Chevron, ExxonMobil, Shell, and TotalEnergies—together reported combined net profits of nearly $47 billion (€40.60 billion) in the second quarter, with earnings multiplying amid the crisis. This echoes a broader trend seen in the sector, as oil majors post record profits when geopolitical instability inflates fuel prices.
CEO Meg O'Neill's strategic pivot
Meg O'Neill, who took over as BP's chief executive in April, described the latest reporting period as "one of the most disrupted periods in the global energy market." The former ExxonMobil executive and ex-head of Australia's Woodside Energy is the first external candidate to lead BP in its 117-year history. She replaced Murray Auchincloss, who stepped down after less than two years in the role.
O'Neill has been candid about the company's recent struggles. "We are not making the most of our potential," she said in the earnings statement. "Our performance over the past few years has not met our own expectations, let alone those of our shareholders."
Under her leadership, BP has shifted its strategy back toward its more profitable oil and gas operations, scaling back earlier investments in clean energy. The company had already slashed its renewable energy spending ahead of O'Neill's appointment, and the pivot is now being reflected in a series of asset disposals.
Divestments and refocusing
In recent weeks, BP has moved to streamline its portfolio. The company sold its Gelsenkirchen refinery in Germany, agreed to sell its retail business in Austria, and announced its intention to sell its North Sea business in the UK. On Tuesday, it also revealed plans to divest Archaea, its US-based biogas business.
"We made good progress strengthening BP's balance sheet," O'Neill said, pointing to these transactions as evidence of a more focused approach. The North Sea sale, in particular, signals that BP does not see its future in the mature basin, despite its historical significance for the UK's energy sector.
The company also raised its quarterly dividend by 4% and reported a core profit measure—which strips out certain items—of $5.7 billion (€4.92 billion), more than double the previous year and ahead of market expectations. Shares rose 0.5% in early London trading following the announcement.
Shareholder tensions and governance issues
O'Neill is also working to steer the company away from recent internal turmoil. At BP's annual meeting in April, shareholders rejected a resolution that would have reduced the company's climate reporting requirements, reflecting ongoing tensions over its environmental commitments.
A month later, BP unexpectedly removed Albert Manifold as chairman, citing "serious concerns" about governance standards, oversight, and conduct. Manifold has denied any wrongdoing. The leadership changes come as BP seeks to reassure investors about its direction and stability.
The company's renewed focus on fossil fuels comes at a time when energy prices remain highly sensitive to geopolitical developments. While the Middle East conflict has boosted profits, it has also introduced significant uncertainty. As oil prices can drop quickly when tensions ease, BP's reliance on volatile markets carries risks.
For Europe, the implications are twofold. On one hand, higher energy prices have strained households and businesses across the continent. On the other, the region's energy security remains a pressing concern, as highlighted by recent disruptions such as the Danube at record low forcing emergency energy measures in central Europe. BP's strategic choices, while aimed at boosting shareholder returns, also shape the broader European energy landscape.
