BP plc (BP.A) AI Stock Analysis

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BP plc

(LSE:BP.A)

Rating:71Outperform

Price Target:

163.00p

▲(10.51% Upside)

BP's overall stock score is driven by strong earnings call performance and solid financial structuring, despite some volatility in income and revenue. Technical indicators present a mixed outlook, while the dividend yield supports valuation. The company's strategic initiatives and shareholder returns are positive, but challenges in certain segments and market conditions need monitoring.

BP plc (BP.A) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap

£64.07B

Dividend Yield5.42%

Average Volume (3M)7.04K

Price to Earnings (P/E)―

Beta (1Y)>-0.01

Revenue GrowthN/A

EPS GrowthN/A

CountryUK

Employees100,500

SectorEnergy

Sector Strength44

IndustryOil & Gas Integrated

Share Statistics

EPS (TTM)N/A

Shares Outstanding7,232,838

10 Day Avg. Volume8,179

30 Day Avg. Volume7,041

Financial Highlights & Ratios

PEG Ratio-2.17

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

£163.00

Price Target Upside10.51% Upside

Rating ConsensusModerate Buy

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: 0.00%|

Next Earnings Date:Nov 04, 2025

Earnings Call Sentiment Positive

BP reported strong operational and strategic progress with significant exploration successes and earnings growth. However, challenges such as elevated CO2 levels in a major discovery, pressure on diesel margins, and notable impairments were also highlighted.

Q2-2025 Updates

Positive Updates

Strong Operational and Strategic Performance

BP delivered strong operational and strategic performance with upstream and downstream reliability greater than 96%. Five new oil and gas major projects were brought on stream, and four more were sanctioned, with ten exploration discoveries made.

Significant Exploration Discoveries

BP made ten exploration discoveries, including a significant one in the Bumerangue Block in Brazil, marking the best year for discoveries in recent memory.

Growth in Earnings and Divestment Proceeds

Underlying earnings in the customers' business increased by around 50% compared to a year ago. Expected proceeds from completed or announced divestments reached around $3 billion for the year.

Cost Reductions and Shareholder Returns

BP delivered around $1.7 billion of structural cost reductions since early 2024. A dividend per ordinary share of $0.0832 was announced, a 4% increase, along with a $750 million share buyback for the second quarter.

Advancements in Technology and AI

BP is utilizing technology and AI to optimize processes, reduce costs, and improve data management, partnering with companies like NVIDIA and Palantir.

Negative Updates

Concerns Over CO2 Content in Brazilian Discovery

The Bumerangue discovery in Brazil had elevated levels of CO2, which could pose challenges in development, although the company is not overly concerned due to its experience in handling CO2.

Pressure on Diesel Margins

BP faced challenges with tight diesel margins in the TravelCenters of America business, impacting overall profitability in that segment.

Impairments in Various Segments

BP announced $1.2 billion in impairments this quarter, including projects in Australia and the gas and low carbon segment.

Company Guidance

During BP's Second Quarter 2025 Results Call, several key metrics and strategic initiatives were highlighted. BP reported a greater than 96% reliability across both upstream and downstream operations, contributing to a strong quarter. The upstream segment saw significant progress with five new major oil and gas projects brought on stream, four more sanctioned, and ten exploration discoveries, including a notable find in the Bumerangue Block in Brazil. Year-to-date, BP has achieved $3 billion in expected proceeds from divestments and has delivered $1.7 billion in structural cost reductions since early 2024. Financially, BP announced a 4% increase in the dividend per ordinary share to $0.0832 and initiated a $750 million share buyback for the second quarter. The company is progressing through a 12-quarter strategic plan, emphasizing the need for further advancements in digital and technology sectors to enhance operational efficiency and shareholder value.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.21B	189.19B	208.35B	241.39B	157.74B	105.94B
Gross Profit	28.89B	30.24B	64.06B	55.10B	22.86B	10.18B
EBITDA	26.99B	27.98B	43.50B	59.47B	32.55B	14.54B
Net Income	-1.20B	381.00M	15.24B	-1.36B	7.57B	-20.73B
Balance Sheet
Total Assets	218.01B	282.23B	280.29B	288.12B	287.27B	267.65B
Cash, Cash Equivalents and Short-Term Investments	26.38B	34.52B	28.59B	29.77B	30.96B	29.53B
Total Debt	55.11B	71.55B	63.08B	55.49B	69.79B	81.93B
Total Liabilities	157.62B	203.91B	194.80B	205.13B	196.83B	182.09B
Stockholders Equity	45.10B	59.25B	70.28B	67.55B	75.46B	71.25B
Cash Flow
Free Cash Flow	10.19B	12.00B	17.75B	28.86B	12.72B	-144.00M
Operating Cash Flow	25.12B	27.30B	32.04B	40.93B	23.61B	12.16B
Investing Cash Flow	-12.66B	-13.25B	-14.87B	-13.71B	-5.69B	-7.86B
Financing Cash Flow	-9.99B	-7.30B	-13.36B	-28.02B	-18.08B	3.96B

BP plc Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price147.50

Price Trends

50DMA

149.24

Negative

100DMA

144.48

Positive

200DMA

138.70

Positive

Market Momentum

MACD

-0.32

Positive

RSI

45.48

Neutral

STOCH

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 148.05, below the 50-day MA of 149.24, and above the 200-day MA of 138.70, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 45.48 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

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEPL	78 Outperform	£1.54B	14.21	7.92%	3.71%	118.04%	65.66%
ENOG	74 Outperform	£1.70B	11.52	17.50%	5.68%	-9.80%	-1.98%
SHEL	73 Outperform	£156.29B	15.49	7.54%	4.11%	-8.55%	-22.62%
BP.A	71 Outperform	£64.07B	―	0.64%	5.42%	―	―
HBR	70 Neutral	£4.02B	21.62	-11.32%	7.68%	123.03%	―
ITH	67 Neutral	£2.91B	15.84	-5.65%	14.70%	1.04%	-156.59%
Sector *	57 Neutral	£7.39B	-1.86	-6.21%	6.73%	6.34%	-82.38%

* Energy Sector Average

Performance Comparison

GB:BP.A

BP plc

147.50

6.03

4.26%

GB:SEPL

SEPLAT Petroleum Development

259.00

83.97

47.97%

GB:HBR

Harbour Energy

226.60

-30.20

-11.76%

GB:SHEL

Shell (UK)

2,628.00

-63.18

-2.35%

GB:ENOG

Energean

911.00

58.45

6.86%

GB:ITH

Ithaca Energy PLC

176.20

70.70

67.01%

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.Date of analysis: Aug 09, 2025