BP p.l.c. (NYSE:BP) and Shell plc (NYSE:SHEL) both posted big profit jumps this quarter, mainly due to the same Iran-war-driven surge in oil and gas prices that already drew a public attack from President Trump on Exxon and Chevron for making “too much money.” However, the two major European energy companies are telling very different stories underneath that shared huge profit.
Why One Company Is Apologizing, and the Other Isn’t
BP’s profit more than doubled as new CEO Meg O’Neill pushes an aggressive turnaround. She has openly admitted the company has “not delivered consistently” in recent years. By contrast, Shell plc (NYSE:SHEL) just posted its best quarter since 2022 while staying the steady course it has followed for years. This marks its 19th straight quarter of buybacks worth at least $3 billion.
This makes you question: is BP’s admission of past failure, paired with aggressive restructuring, the right way to catch up with steadier rivals like Shell? Or does Shell’s consistency prove BP’s dramatic reset was never actually necessary?
BP’s Bull and Bear Case
Profit hit $5.73 billion, beating the $5.11 billion analysts expected and more than doubling from a year earlier. BP p.l.c. (NYSE:BP) raised its dividend 4% and cut net debt to $22.25 billion from $25.3 billion, putting it on track to hit its long-term debt target early. O’Neill laid out a clear five-point turnaround plan. Citi said BP has lost its unwanted status as the most indebted of the major oil firms.
However, O’Neill herself admitted BP has “written off too much value” and that its “costs and liabilities are not resilient enough” for a low-price environment. The company is still selling billions in assets, including its U.S. biogas business, its North Sea operations, and its Austrian retail unit, just to fund the turnaround. Total liabilities remain around $40 billion, which O’Neill herself called too high. The stock actually fell about 2% on earnings day, even with the beat, as oil prices dropped on hopes of a U.S.-Iran deal. BP also went through boardroom turmoil this year, removing its chairman over governance concerns.
Shell’s Bull and Bear Case
Adjusted earnings came in at $9.84 billion, beating the $8.92 billion estimate and marking Shell plc (NYSE:SHEL)’s best quarter since 2022. Net debt fell sharply to $41.75 billion from $52.6 billion, and Shell maintained its 19th consecutive buyback of at least $3 billion. Its integrated gas business grew profit 55% even while dealing with a plant outage. CEO Wael Sawan said Shell built a firm designed to “thrive through volatility.”
However, Shell’s Pearl gas-to-liquids plant in Qatar has been offline since March after an attack damaged it, costing the company roughly 10% of its total production, with repairs expected to take about a year. Shell still trades at a discount to European rivals like TotalEnergies and Eni, reflecting investor concerns about its long-term upstream growth. Despite this quarter’s strong results, Shell’s stock gain for the year still trails BP, Exxon, and Chevron.
Insider Monkey’s Hedge Fund Data
Insider Monkey’s hedge fund database shows BP p.l.c. (NYSE:BP) had 49 hedge fund holders as of Q1 2026, down from 51 the quarter before, though the dollar value hedge funds held actually rose from about $4.0 billion to $5.78 billion. Shell plc (NYSE:SHEL) had 45 holders, up from 43, with the dollar value held rising from about $4.18 billion to $5.67 billion.
Among their U.S. rivals, Exxon had 94 hedge fund holders as of Q1 2026, down from 98, and Chevron had 103, up from 86. BP and Shell both trail the two U.S. majors in total holder count.
Conclusion
Shell plc (NYSE:SHEL) keeps proving that consistency wins in a volatile market, quarter after quarter of steady buybacks and execution. BP is betting that admitting past mistakes and moving fast to fix them can close the gap, and this quarter’s results suggest that bet might be starting to pay off.
Overall, hedge funds favor BP p.l.c. (NYSE:BP) over Shell.
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Disclosure: None. This article is originally published at Insider Monkey.
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