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BP PLC on Tuesday said it expects an ‘exceptional’ oil trading result in the first quarter of 2025, after a weak fourth quarter, boosted by stronger refining margins and higher oil prices. The London-based oil major noted Brent crude averaged $81.13 per barrel in the three months to March, up 27% from $63.73 in the fourth quarter, while its refining indicator margin rose to $16.9 per barrel from $15.2, reflecting improved market conditions. The FTSE 100 listing said ‘heightened volatility in crude oil, natural gas and refined products prices’ caused by the Middle East crisis are expected to impact financial results, including trading results and working capital movements. Shares in BP were down 0.3% at 577.60 pence each in London on Tuesday morning with stock price fortunes continuing to be closely influenced by the fluctuating price of oil. Brent traded at $97.91 a barrel on Tuesday morning compared to $101.95 at the time of the London equities market close on Monday. BP said upstream production is expected to be broadly flat overall versus the fourth quarter of 2,344 million barrels of oil equivalent per day, with gas and low carbon energy output slightly higher and oil production slightly lower from 1,555 mboe/d. Realisations in the gas & low carbon energy segment are expected to be broadly flat compared to the prior quarter, with the gas marketing and trading result expected to be ‘average’. Results in the customers & products segment are expected to reflect seasonally lower volumes and lower retail fuels margins, more than offset by stronger midstream performance, and stronger realised refining margins. ‘The oil trading result is expected to be exceptional,’ BP said, after a ‘weak’ fourth quarter. Net debt at the end of the quarter is expected to be in the range of $25 to $27 billion, increased from $22.2 billion at the end of the fourth quarter. This is driven primarily by a significant working capital build in the range of $4 to $7 billion, largely due to the price environment, BP explained. Capital expenditure in the first quarter is expected to be broadly flat compared to $3.5 billion in the prior quarter. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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