BP plc (GB:BP.A)
LSE:BP.A
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BP plc
(LSE:BP.A)
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Rating:62Neutral
Price Target:
154.00 p
▲(2.33% Upside)
Action:Reiterated
Date:05/04/26
The score is driven primarily by mixed financial performance: strong cash generation but weak recent net profitability and elevated earnings volatility, with leverage trending higher. Valuation is a notable support (low P/E and high dividend yield), while the earnings call was moderately constructive on capital discipline and operations but flagged near-term headwinds (working-capital build, refining margin pressure, geopolitical/shipping risk). Technical indicators add a mild drag due to negative momentum and price sitting below key moving averages.
Positive Factors
Strong cash generation
BP's consistently strong operating cash flow and solid trailing‑12‑month free cash flow provide durable internal funding for capex, dividends and deleveraging. Reliable cash generation underpins long‑term capital allocation flexibility even through commodity cycles.
Negative Factors
Weak net profitability and earnings volatility
Near‑zero net margins and marked profit swings across recent years weaken earnings quality and predictability. Persistent volatility limits retained earnings growth, strains returns on equity, and complicates long‑term planning for dividends, capex and transition spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
BP's consistently strong operating cash flow and solid trailing‑12‑month free cash flow provide durable internal funding for capex, dividends and deleveraging. Reliable cash generation underpins long‑term capital allocation flexibility even through commodity cycles.
Read all positive factors
BP plc (BP.A) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£87.32B
Dividend Yield5.37%
Average Volume (3M)4.62K
Price to Earnings (P/E)8.2
Beta (1Y)>-0.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.19
Shares Outstanding7,232,838
10 Day Avg. Volume4,635
30 Day Avg. Volume4,620
Financial Highlights & Ratios
PEG Ratio-19.42
Price to Book (P/B)1.71
Price to Sales (P/S)0.48
P/FCF Ratio8.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BP plc Business Overview & Revenue Model
Company Description
BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; tradi...
How the Company Makes Money
BP makes money primarily by producing, trading, processing, and selling energy and energy-related products and services across multiple segments. (1) Upstream (oil and gas production): BP earns revenue from the sale of crude oil, natural gas, and ...
BP plc Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational performance (2.3 mboe/d production, >96% refining availability, highest quarterly throughput in 4 years), solid trading-generated value (notably in oil), meaningful exploration success (14 discoveries and the large Bumerangue find), ongoing structural cost reductions and clear actions to strengthen the balance sheet (paused buybacks, planned >$4bn hybrid reduction, Castrol sale). Offsetting these positives were a sizable $6bn working capital build that increased net debt, refining realized margin headwinds (potentially >$5/bbl impact), Middle East shipping risks, and tempered gas trading results. Management presented clear priorities on simplification, capital discipline and deleveraging with concrete targets and progress.Positive Updates
Strong Production and Operations
Produced 2.3 million barrels of oil equivalent per day (boe/d), supported by high plant reliability, higher production in the Gulf of America and strong BPX performance; refining availability was above the 96% target and throughput exceeded 1.5 million barrels per day (highest quarterly throughput in 4 years).
Negative Updates
Working Capital Build Increased Net Debt This Quarter
Net debt increased in the quarter, largely attributed to a $6.0 billion working capital build, temporarily tying up cash and pressuring leverage metrics.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Production and Operations
Produced 2.3 million barrels of oil equivalent per day (boe/d), supported by high plant reliability, higher production in the Gulf of America and strong BPX performance; refining availability was above the 96% target and throughput exceeded 1.5 million barrels per day (highest quarterly throughput in 4 years).
Read all positive updates
Company Guidance
Management guidance centered on disciplined capital allocation and balance‑sheet repair: Q1 underlying net income was $3.2bn with operating cash flow of $8.9bn before a $6bn working‑capital build, buybacks paused to accelerate net‑debt delivery and a plan to reduce the corporate hybrid stack by >$4bn by end‑2027 (two tranches callable in 2026–27; original June‑2020 hybrids ~$12bn expected to retain equity treatment). Operationally they flagged production of 2.3mm boe/d (Middle East ~400k boe/d, historically ~100k bpd exported via the Strait of Hormuz), refining availability above 96% with throughput >1.5mm bpd (highest quarterly in four years), and continued exploration momentum (14 discoveries since start‑2025; Bumerangue ~8bn bbls in place). The financial framework includes a CapEx envelope of $13–15bn over the next two years (tightened this year), another $300m of structural cost savings delivered (70% of the 4–5% target), reserve replacement ~90% last year (≈76% ex‑price) with a 100% replacement target by 2027, an LNG strategic portfolio ~27 Mtpa plus ~15 Mtpa merchant, and the caveat that realized refining margins could be >$5/bbl below the refining indicator if current dislocations persist.BP plc Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 193.54B | 189.34B | 185.23B | 213.67B | 240.86B | 154.71B |
| Gross Profit | 42.27B | 33.53B | 28.11B | 47.39B | 54.05B | 21.65B |
| EBITDA | 35.50B | 31.07B | 25.11B | 42.89B | 29.37B | 27.82B |
| Net Income | 3.13B | 55.00M | 382.83M | 15.50B | -2.48B | 7.42B |
Balance Sheet | ||||||
| Total Assets | 301.73B | 278.53B | 282.23B | 280.29B | 288.12B | 287.27B |
| Cash, Cash Equivalents and Short-Term Investments | 35.76B | 36.71B | 34.52B | 28.59B | 29.77B | 30.96B |
| Total Debt | 74.17B | 72.53B | 71.55B | 63.08B | 55.49B | 69.79B |
| Total Liabilities | 224.77B | 204.53B | 203.91B | 194.80B | 205.13B | 196.83B |
| Stockholders Equity | 55.96B | 53.05B | 59.25B | 70.28B | 67.55B | 75.46B |
Cash Flow | ||||||
| Free Cash Flow | 11.42B | 11.27B | 12.00B | 17.75B | 28.86B | 12.72B |
| Operating Cash Flow | 24.44B | 24.49B | 27.30B | 32.04B | 40.93B | 23.61B |
| Investing Cash Flow | -11.17B | -11.50B | -13.25B | -14.87B | -13.71B | -5.69B |
| Financing Cash Flow | -11.41B | -15.88B | -7.30B | -13.36B | -28.02B | -18.08B |
BP plc Technical Analysis
Negative
150.50
Price Trends
146.03
Negative
148.17
Negative
147.03
Negative
Market Momentum
-0.31
Positive
35.42
Neutral
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP.A, the sentiment is Negative. The current price of 150.5 is above the 20-day moving average (MA) of 145.55, above the 50-day MA of 146.03, and above the 200-day MA of 147.03, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BP.A.
BP plc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £3.57B | 28.81 | 9.72% | 5.64% | 49.70% | -5.56% | |
70 Outperform | £4.24B | 21.34 | 9.33% | 14.05% | 36.10% | ― | |
69 Neutral | £5.23B | -136.53 | -4.05% | 8.77% | 57.55% | -54.80% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | £180.54B | 12.01 | 10.58% | 4.00% | -9.84% | 41.13% | |
62 Neutral | £87.32B | 8.24 | 5.52% | 5.37% | ― | ― | |
58 Neutral | £1.59B | -1.49 | -65.81% | 10.99% | 27.35% | -228.25% |
* Energy Sector Average
GB:BP.A
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.