British energy major BP on Tuesday reported that first-quarter profits more than doubled from a year ago, following a surge in oil and gas prices driven by the Middle East conflict.

The oil giant posted underlying replacement cost profit, used as a proxy for net profit, of $3.2 billion for the first three months of the year. That comfortably beat analyst expectations of $2.63 billion, according to an LSEG-compiled consensus.

The company said the first-quarter results reflect "exceptional" oil trading contributions and stronger midstream performance. BP's net profit came in at $1.38 billion over the same period last year and $1.54 billion in the final three months of 2025.

"Overall, our business continues to run well. This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets," BP CEO Meg O'Neill said in a statement.

BP's earnings come as oil and gas companies experience a significant share price boost, with fossil fuel prices soaring since the U.S.-Israeli war against Iran started on Feb. 28.

Ongoing and severe disruption through the strategically vital Strait of Hormuz has resulted in what the International Energy Agency has described as the biggest energy security threat in history.

Shares of BP rose 2.5% during morning deals. The London-listed stock has rallied this year, advancing more than 32%, which means BP is second-only to France's TotalEnergies among the top five oil supermajors.

Analysts at Citi said the first statements from BP's new CEO show "a clear emphasis on financial de-leverage and decreasing the company's cost of debt."

BP's net debt came in at $25.3 billion at the end of the first quarter, up from $22.18 billion at the end of last year. The company is aiming to bring its net debt down to between $14 billion and $18 billion by the end of next year.

Looking ahead, BP said it expects reported upstream production to be lower when compared to the first three months of the year, citing seasonal maintenance and Middle East disruptions.

The company reaffirmed its 2026 capital expenditure guidance at $13 billion to $13.5 billion and said it expects divestment and other proceeds to be at $9 billion to $10 billion through the year.

"Even after priming the market for a good quarter, BP delivered results that were both positive and better of expectations," Maurizio Carulli, global energy analyst at Quilter Cheviot, said in a research note.

"Elevated oil prices tend to lift all boats in the energy sector, but being an integrated player in the market means BP will see enhanced cash flow as oil prices remain elevated, and for as long as talks between the US and Iran remain unproductive, these positive outcomes are likely to be prolonged," he added.

BP's board suffered a shareholder revolt at its annual general meeting last week following a tense clash with investors over corporate governance and climate transparency.

The company failed to get majority shareholder approval on two highly anticipated motions, which would have permitted online-only AGMs and retired two company-specific climate disclosure obligations.

It formed part of a broader investor rebellion at the AGM, one that resulted in weaker-than-typical support for BP Chair Albert Manifold and robust backing for a motion calling on the energy major to justify its capital discipline on oil and gas investments.