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BP plc (BP.A) (GB:BP.A)
:BP.A
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BP plc
(LSE:BP.A)
Select Model
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Rating:65Neutral
Price Target:
162.00p
▲(7.64% Upside)
BP's overall stock score reflects a mix of strong operational performance and strategic progress highlighted in the recent earnings call, offset by financial challenges such as declining revenues and high leverage. The technical analysis supports a moderately positive outlook, while the attractive dividend yield enhances valuation appeal. However, the absence of a P/E ratio limits a full valuation assessment.
BP plc (BP.A) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£71.20B
Dividend Yield5.28%
Average Volume (3M)6.03K
Price to Earnings (P/E)―
Beta (1Y)-0.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)N/A
Shares Outstanding7,232,838
10 Day Avg. Volume5,573
30 Day Avg. Volume6,030
Financial Highlights & Ratios
PEG Ratio-2.16
Price to Book (P/B)1.36
Price to Sales (P/S)0.43
P/FCF Ratio6.71
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 DescriptionBP plc is a British multinational oil and gas company headquartered in London, England. It operates in all areas of the oil and gas industry, including exploration, production, refining, distribution, and marketing. BP is also involved in renewable energy sectors, including biofuels, wind power, and solar energy. The company serves a global customer base and is recognized for its efforts in transitioning towards more sustainable energy solutions while maintaining a significant presence in traditional fossil fuel markets.
How the Company Makes MoneyBP generates revenue primarily through the exploration and production of oil and natural gas, which involves extracting resources from various fields and selling them in the global market. The company also earns significant revenue from refining crude oil into petroleum products, such as gasoline and diesel, which are sold through its extensive network of retail service stations. Additionally, BP's marketing division plays a crucial role in its revenue model by selling fuels and lubricants to commercial and industrial customers. The company has entered into various strategic partnerships and joint ventures, particularly in the renewable energy sector, which contribute to its earnings by diversifying its energy portfolio. Furthermore, fluctuations in global oil prices, geopolitical factors, and advancements in technology significantly impact BP’s financial performance.
BP plc Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
BP's Q3 2025 earnings call highlighted strong financial and operational performance, with significant exploration successes and progress in divestments. However, challenges were noted in the trading segment, and uncertainties remain regarding arbitration outcomes and future exploration costs.Q3-2025 Updates
Positive Updates
Strong Financial Performance
BP reported underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion for Q3 2025. Operating cash flow for the quarter was $7.8 billion, supporting a 20% CAGR growth target for adjusted free cash flow from 2025 to 2027.
Operational Excellence
Upstream production increased by approximately 3% quarter-on-quarter, with upstream plant reliability at 97%. Refining availability was also close to 97%, marking the best quarter in 20 years for the current portfolio.
Exploration Success
BP achieved 12 exploration discoveries in 2025, including significant findings in Brazil and Namibia. The Bumerangue discovery in Brazil is highlighted as the largest in 25 years.
Cost and Efficiency Improvements
Structural cost reductions have been achieved across various business units, including approximately $0.5 billion in the customer segment and $200 million in refining.
Progress in Divestment and Strategic Reviews
BP upgraded proceeds guidance, expecting around $5 billion from divestments. The company is progressing with strategic reviews of assets like Castrol, Gelsenkirchen, and Lightsource.
Negative Updates
Challenges in Trading Segment
The trading segment experienced a weaker performance in Q3 compared to previous quarters.
Venture Global Arbitration
There is ongoing arbitration related to Venture Global, with BP seeking damages. The resolution and financial implications remain uncertain.
Potential Headwinds in Exploration Costs
Concerns were raised about whether exploration costs, particularly related to Bumerangue appraisal, would increase and impact BP's overall budget.
Company Guidance
During BP's Third Quarter 2025 Results Call, the company reported substantial metrics, showcasing strong operational performance and strategic progress. The quarter saw underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion, with operating cash flow reaching $7.8 billion. Upstream production increased by around 3% quarter-on-quarter, supported by plant reliability at 97%, marking the best quarter in 20 years for the current portfolio. Full-year underlying production guidance was upgraded, with refining availability also near 97%. BP initiated six new major oil and gas projects in 2025, with four starting ahead of schedule, and made twelve exploration discoveries, including the promising Bumerangue in Brazil. Compared to the same period in 2024, underlying earnings for the first nine months were approximately 40% higher, and the company delivered its highest third-quarter results in the customer segment. BP is advancing towards its $20 billion divestment proceeds target, with updated guidance expecting around $5 billion in completed and announced proceeds for the year. The firm remains disciplined with organic CapEx, projected to stay below $14 billion, and is focused on reducing costs, growing cash flow, and strengthening the balance sheet to enhance shareholder value and returns.BP plc Financial Statement Overview
Summary
BP plc faces a challenging financial environment with declining revenues and profitability pressures. The company exhibits high leverage, which could impact financial flexibility. Cash flow generation is moderate but needs improvement to support operations and growth. Addressing revenue growth, profitability, and debt management are key areas for enhancing financial performance and stability.Income Statement
BP plc's income statement reflects a challenging period with a significant revenue decline of 44.1% in the TTM, impacting profitability. The gross profit margin stands at 15.43%, while the net profit margin is negative at -0.64%, indicating struggles in converting revenue into profit. EBIT and EBITDA margins are moderate at 5.45% and 14.42%, respectively, but have decreased compared to previous years. The company needs to address revenue growth and profitability to improve its financial health.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 1.22, suggesting significant leverage, which could pose risks if not managed carefully. Return on equity is negative at -2.02%, reflecting challenges in generating returns for shareholders. The equity ratio is relatively stable, indicating a balanced asset structure. Improving equity returns and managing debt levels are crucial for financial stability.55
Neutral
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 15.72% in the TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.39, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.41, showing some ability to convert earnings into cash. Enhancing cash flow generation and efficiency is essential for sustaining operations.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 185.45B | 185.23B | 213.67B | 240.86B | 154.71B | 112.38B |
| Gross Profit | 29.99B | 28.11B | 47.39B | 54.05B | 21.65B | -534.61M |
| EBITDA | 28.62B | 25.11B | 42.89B | 29.37B | 27.82B | -7.46B |
| Net Income | 609.55M | 382.83M | 15.50B | -2.48B | 7.42B | -21.54B |
Balance Sheet | ||||||
| Total Assets | 284.74B | 282.23B | 280.29B | 288.12B | 287.27B | 267.65B |
| Cash, Cash Equivalents and Short-Term Investments | 35.31B | 34.52B | 28.59B | 29.77B | 30.96B | 29.53B |
| Total Debt | 74.98B | 71.55B | 63.08B | 55.49B | 69.79B | 81.93B |
| Total Liabilities | 204.96B | 203.91B | 194.80B | 205.13B | 196.83B | 182.09B |
| Stockholders Equity | 59.24B | 59.25B | 70.28B | 67.55B | 75.46B | 71.25B |
Cash Flow | ||||||
| Free Cash Flow | 8.59B | 12.00B | 17.75B | 28.86B | 12.72B | -144.00M |
| Operating Cash Flow | 23.29B | 27.30B | 32.04B | 40.93B | 23.61B | 12.16B |
| Investing Cash Flow | -12.18B | -13.25B | -14.87B | -13.71B | -5.69B | -7.86B |
| Financing Cash Flow | -10.93B | -7.30B | -13.36B | -28.02B | -18.08B | 3.96B |
BP plc Technical Analysis
Positive
150.50
Price Trends
149.49
Positive
149.32
Positive
144.00
Positive
Market Momentum
0.35
Positive
76.62
Negative
47.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP.A, the sentiment is Positive. The current price of 150.5 is below the 20-day moving average (MA) of 150.55, above the 50-day MA of 149.49, and above the 200-day MA of 144.00, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 76.62 is Negative, neither overbought nor oversold. The STOCH value of 47.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | £1.77B | 10.89 | 17.24% | 5.68% | -2.66% | 0.11% | |
77 Outperform | £163.26B | 15.13 | 8.25% | 3.75% | -9.21% | -2.61% | |
70 Outperform | £1.75B | 10.79 | 12.03% | 3.39% | 159.13% | 143.76% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | £71.20B | ― | ― | 5.28% | ― | ― | |
63 Neutral | £3.79B | -10.03 | -11.32% | 7.39% | 123.03% | -330.89% | |
62 Neutral | £3.67B | -29.56 | -7.04% | 11.26% | 31.96% | -159.27% |
* Energy Sector Average
GB:BP.A
BP plc
151.50
14.29
10.41%
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236.00
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GB:SHEL
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2,931.50
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GB:SEPL
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33.33%
GB:ENOG
Energean
1,026.00
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18.22%
GB:ITH
Ithaca Energy PLC
234.50
154.35
192.58%
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.