BP Q1 2026 Results
BP reported a solid start to 2026, with profits rebounding sharply from the previous quarter. The company posted an underlying replacement cost (RC) profit of $3.2 billion more than double the $1.5 billion reported in Q4 2025. This improvement was largely driven by strong oil trading performance and better results from its midstream business (transport, storage, and wholesale fuel operations.)
Reported profit reached $3.8 billion a significant turnaround from a $3.4 billion loss in the previous quarter. A lower effective tax rate of 32% - down from 43% also helped boost results, mainly due to where BP earned its profits globally.
Key adjustments explained
To better reflect ongoing business performance, BP adjusts its reported profit figures. In Q1results included a $3.2 billion gain from inventory holding (after tax), alongside $2.5 billion in negative adjustments. These adjustments were mainly tied to accounting-related valuation changes ($1.1 billion pre-tax) and asset impairments ($0.4 billion after tax.)
For convenience store gas stations, these adjustments matter because they show how much of BP’s performance is driven by core fuel and energy operations versus one-time or accounting-related factors.
Gas and low-carbon energy
BP’s gas and low-carbon energy segment returned to profitability, reporting at $1.1 billion in RC profit before interest and tax, compared to a $2.2 billion loss in Q4 2025. After stripping out one-time impacts, underlying profit came in a t $1.3 billion, slightly below the $1.4 billion posted last quarter.
Performance in this segment remained relatively flat, with steady pricing offset by timing delays known as “price lags.” Gas marketing and trading delivered average results, signalling stable but unspectacular demand.
What this means
For C-store gas stations, bp’s strong quarter points to a more stable and potentially profitable fuel market compared to late 2025. Gains in trading and midstream operations often translate into improved supply chain efficiency and pricing opportunities at the pump.
However, flat performance in gas and steady oil production highlight that volatility hasn’t disappeared. Retailers should continue to monitor wholesale pricing trends and regional supply dynamics as 2026 unfolds.
Key financial numbers:
Underlying RC profit: $3.2 B
Reported profit $3.8B
Inventory holding gains: $3.2B
Effective tax rate 32%
Drivers: Strong oil trading and midstream performance.