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BP plc (GB:BP.A)
LSE:BP.A
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BP plc
(LSE:BP.A)
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Rating:61Neutral
Price Target:
156.00p
▲(5.76% Upside)
BP's overall stock score reflects a challenging financial environment with declining revenues and profitability pressures. However, strong operational performance and strategic initiatives highlighted in the earnings call provide a positive outlook. The high dividend yield adds to the attractiveness for income investors, while technical indicators suggest a neutral market sentiment.
BP plc (BP.A) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£67.08B
Dividend Yield5.42%
Average Volume (3M)6.61K
Price to Earnings (P/E)―
Beta (1Y)0.03
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. Volume12,069
30 Day Avg. Volume6,613
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 Target
£156.00Price Target Upside5.76% Upside
Rating ConsensusHold
Number of Analyst Covering1
BP plc Business Overview & Revenue Model
Company DescriptionBP 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; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. Further, it engages in power and storage, digital transformation, carbon management, and bio and low carbon related products, as well as energy and environmental commodities and mobility businesses. The company was founded in 1908 and is headquartered in London, the United Kingdom.
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)
| 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 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
Neutral
147.50
Price Trends
148.21
Negative
148.12
Negative
140.84
Positive
Market Momentum
-0.29
Positive
46.40
Neutral
35.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP.A, the sentiment is Neutral. The current price of 147.5 is below the 20-day moving average (MA) of 148.33, below the 50-day MA of 148.21, and above the 200-day MA of 140.84, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | £1.79B | 16.03 | 7.74% | 3.18% | 118.04% | 65.66% | |
75 Outperform | £155.08B | 15.32 | 7.51% | 4.03% | -8.55% | -22.62% | |
70 Outperform | £1.50B | 9.38 | 29.47% | 5.52% | -2.66% | 0.11% | |
70 Outperform | £3.29B | -26.52 | -6.28% | 13.29% | 31.96% | -159.27% | |
61 Neutral | £67.08B | ― | 0.64% | 5.42% | ― | ― | |
61 Neutral | £3.48B | -9.16 | -1.49% | 8.40% | 123.03% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
GB:BP.A
BP plc
147.50
0.82
0.56%
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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.