Education
About Us
Working with TipRanks
Follow Us
BP plc (GB:BP.A)
LSE:BP.A
Top Page
BP plc
(LSE:BP.A)
Rating:61Neutral
Price Target:
157.00p
▲(5.72% Upside)
BP plc (BP.A) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£65.97B
Dividend Yield5.39%
Average Volume (3M)5.32K
Price to Earnings (P/E)―
Beta (1Y)<0.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength67
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)N/A
Shares Outstanding7,232,838
10 Day Avg. Volume2,545
30 Day Avg. Volume5,315
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£157.00Price Target Upside5.72% Upside
Rating ConsensusHold
Number of Analyst Covering1
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:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
BP's Q2 2025 earnings call highlighted strong operational and financial performance, including significant exploration successes and increased earnings in the customers' business. However, challenges remain with diesel margins and impairments, as well as a notable working capital build. Overall, the positives, particularly in exploration and earnings growth, outweigh the negatives.Q2-2025 Updates
Positive Updates
Strong Operational Performance
BP achieved reliability across upstream and downstream operations greater than 96%. Year-to-date, they brought 5 new oil and gas major projects on stream and sanctioned 4 more, making 10 exploration discoveries, including significant finds in Brazil and Namibia.
Financial Growth
Underlying earnings in the customers' business increased by around 50% compared to the previous year. Additionally, BP has delivered $1.7 billion of structural cost reductions since early 2024.
Dividend and Share Buyback
BP announced a dividend per ordinary share of $0.0832, an increase of 4%, and a further $750 million share buyback for the second quarter.
Exploration Success
The year marked the best in a decade for exploration with 10 commercial discoveries. Notable discoveries include the Bumerangue Block in Brazil and the Capricornus well in Namibia.
Record Convenience and Mobility Performance
BP's M&C segment saw a 50% increase in profitability in H1 2025 versus H1 2024, marking the best second quarter since 2012.
Negative Updates
Diesel Margin Challenges
BP's TravelCenters of America is experiencing tight diesel margins, impacting profitability. The company is focusing on improving diesel margins and increasing customer inflow.
Impairments
BP recorded $1.2 billion in impairments this quarter, including assets in the customer and products space related to hydrogen and biofuels in Australia and gas and low carbon space.
Working Capital Build
BP experienced a working capital build of $4.7 billion in the first half of 2025. They expect some of this to unwind in the second half of the year.
Company Guidance
In the second quarter of 2025, BP showcased a robust operational and strategic performance, with reliability across both upstream and downstream sectors exceeding 96%. The company brought five new major oil and gas projects online, sanctioned four more, and achieved ten exploration discoveries, including a notable find in Brazil's Bumerangue Block. BP reported a 50% increase in underlying earnings in its customer business compared to the previous year and announced divestment proceeds of around $3 billion. The company realized $1.7 billion in structural cost reductions since early 2024 and declared a $0.0832 dividend per ordinary share, marking a 4% increase. Additionally, BP announced a $750 million share buyback for the second quarter. This marks the completion of two quarters in a 12-quarter plan, with ongoing efforts to enhance digital and technology initiatives across the upstream and downstream sectors.BP plc Financial Statement Overview
Summary
BP plc demonstrates solid operational efficiency and stable financial structuring, with strong cash flows supporting its operations. However, volatility in net income and recent revenue declines pose potential risks. The company needs to address these challenges to maintain its financial health and growth trajectory.Income Statement
The income statement shows solid gross profit margins, though there is volatility in net income with recent negative net income in TTM and 2022. Revenue growth has been inconsistent, with a notable decline in the latest TTM period. EBIT and EBITDA margins remain strong, indicating operational efficiency despite challenges.68
Positive
Balance Sheet
The balance sheet is robust with a moderate debt-to-equity ratio, suggesting balanced leverage. Equity ratio is stable, indicating a sound financial structure. However, fluctuations in stockholders' equity and liabilities need monitoring for future stability.72
Positive
Cash Flow
Cash flow analysis reveals strong operational cash flows with a healthy free cash flow, despite recent declines. The free cash flow to net income ratio is favorable, reflecting efficient cash conversion. However, the decline in free cash flow growth in the TTM period raises concerns.75
Positive
| 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
148.50
Price Trends
148.99
Negative
146.29
Positive
139.43
Positive
Market Momentum
0.09
Negative
50.69
Neutral
30.00
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 148.5 is above the 20-day moving average (MA) of 148.38, below the 50-day MA of 148.99, and above the 200-day MA of 139.43, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 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
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £1.52B | 13.99 | 7.92% | 3.76% | 118.04% | 65.66% | |
78 Outperform | £158.89B | 15.80 | 7.54% | 4.11% | -8.55% | -22.62% | |
71 Outperform | £3.80B | 21.62 | -11.32% | 7.73% | 123.03% | ― | |
70 Outperform | £3.11B | 15.84 | -7.04% | 14.06% | 31.96% | -159.27% | |
67 Neutral | £1.70B | 11.51 | 17.50% | 5.68% | -9.80% | -1.98% | |
66 Neutral | $15.26B | 7.30 | 3.22% | 5.27% | 4.16% | -60.82% | |
61 Neutral | £65.97B | ― | 0.64% | 5.39% | ― | ― |
* Energy Sector Average
Performance Comparison
GB:BP.A
BP plc
148.50
2.30
1.57%
GB:HBR
Harbour Energy
224.20
-19.13
-7.86%
GB:SHEL
Shell (UK)
2,627.50
185.25
7.59%
GB:SEPL
SEPLAT Petroleum Development
252.50
82.13
48.21%
GB:ENOG
Energean
892.50
74.42
9.10%
GB:ITH
Ithaca Energy PLC
185.60
96.29
107.82%
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.