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BP plc (BP.B) (GB:BP.B)
:BP.B
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BP plc
(LSE:BP.B)
Rating:71Outperform
Price Target:―
BP plc (BP.B) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£61.65B
Dividend Yield3.17%
Average Volume (3M)8.57K
Price to Earnings (P/E)―
Beta (1Y)0.17
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength45
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)N/A
Shares Outstanding5,473,414
10 Day Avg. Volume5,054
30 Day Avg. Volume8,570
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.44
Price to Sales (P/S)0.00
P/FCF Ratio8.14
Enterprise Value/Market Cap1.95
Enterprise Value/Revenue0.16
Enterprise Value/Gross Profit4.17
Enterprise Value/Ebitda0.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
BP plc Business Overview & Revenue Model
Company DescriptionBP plc (BP.B) is a global energy company headquartered in London, United Kingdom. It operates across various sectors of the energy industry, including oil and gas exploration, production, refining, and marketing. BP is also involved in renewable energy sectors such as solar and wind power. The company's core products and services include fuel, lubricants, and petrochemicals, along with providing energy solutions across multiple markets worldwide.
How the Company Makes MoneyBP plc generates revenue through a diversified business model centered around its three main segments: Upstream, Downstream, and Rosneft. The Upstream segment involves the exploration and production of oil and natural gas, where BP earns money by extracting and selling these resources. The Downstream segment comprises refining, marketing, and distribution of petroleum products, as well as the production and sale of petrochemicals, generating income from the sale of refined products and chemicals. Additionally, BP holds a significant stake in Rosneft, a major Russian integrated energy company, contributing to its earnings through dividends and share of profits. BP also invests in renewable energy and low-carbon technologies, tapping into growing markets for sustainable energy solutions.
BP plc Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 10.24%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
BP showed strong operational performance and made significant exploration discoveries, while also achieving cost reductions. However, this was offset by weak gas trading results, increased net debt, high tax rates, and challenges in refining profitability. The highlights and lowlights are relatively balanced.Q1-2025 Updates
Positive Updates
Strong Operational Performance
BP reported strong operational performance in 1Q2025 with over 96% refining availability and more than 95% upstream plant reliability. Three major upstream projects were started, adding 100 mbd of capacity towards a target of 250 mbd by 2027.
Exploration Discoveries
BP made six exploration discoveries, including significant finds in the Gulf of America, Trinidad, Egypt, and Namibia.
Cost Reduction Achievements
BP reported a $500 million reduction in operating expenditure quarter-on-quarter. This is part of a broader $4 billion to $5 billion cost reduction program.
Progress in Divestments
BP has completed or signed $1.5 billion in divestment agreements year-to-date and expects $3 billion to $4 billion in divestments for 2025, with proceeds weighted to the second half.
Negative Updates
Weak Gas Trading Performance
Gas and low carbon energy segment missed expectations primarily due to a weak gas trading result. BP expects to return to normal trading performance in the future.
Increase in Net Debt
Net debt rose in the quarter primarily due to a working capital build. Although BP expects the majority of this to unwind through the year, it remains a point of concern.
High Effective Tax Rate
BP reported a group effective tax rate of around 50% for 1Q2025, which is higher than previous quarters, driven by the composition of profits in higher-taxed areas.
Challenges in Refining Profitability
Despite 96% refining availability, the refining business was loss-making due to difficult margin environments in the Midwest and Rotterdam.
Company Guidance
During the BP First Quarter 2025 Results Call, Murray Auchincloss highlighted several key performance metrics. BP achieved over 96% refining availability and more than 95% upstream plant reliability, contributing to record operating efficiency. The company started three major upstream projects, adding 100 mbd of capacity towards a 250 mbd target by 2027, and made six exploration discoveries. Underlying pretax earnings met consensus, despite weak gas trading results. BP reduced CAPEX by $0.5 billion to $14.5 billion for 2025, with organic CAPEX below $14 billion. The company also completed or signed $1.5 billion in divestment agreements, expecting $3 billion to $4 billion in total for 2025. BP made progress in reducing costs, with $500 million in underlying operating expenditure savings quarter-on-quarter. Net debt rose due to working capital build-up but is expected to unwind throughout the year.BP plc Financial Statement Overview
Summary
BP plc demonstrates a mixed financial performance with operational efficiencies in gross and EBIT margins but faces pressure on net profitability, evidenced by negative net income. The balance sheet shows solid equity and manageable debt levels, though profitability metrics like ROE are concerning. Cash flow remains strong, supporting liquidity despite profit challenges. Overall, BP shows stability with room for improvement in profitability and growth.Income Statement
BP's TTM (Trailing-Twelve-Months) financials show a gross profit margin of 15.42% and an EBIT margin of 8.40%, indicating moderate operational efficiency. However, the company has faced a significant net loss in the last twelve months due to a negative net profit margin of -0.64%. Revenue has decreased from the previous annual report, showing a revenue growth rate of -1.04%. Strengths include sustained gross profit and EBIT margins, but challenges are evident in net profitability and declining revenue.65
Positive
Balance Sheet
BP's balance sheet reflects a debt-to-equity ratio of 1.22, indicating a conservative capital structure with manageable leverage. The equity ratio stands at 20.69%, suggesting a solid equity base. However, a negative return on equity of -2.05% in the TTM highlights profitability concerns. Strengths include a stable equity structure and controlled debt levels, but profitability remains a challenge.70
Positive
Cash Flow
BP's cash flow analysis is positive, with an operating cash flow to net income ratio of -21.02, highlighting strong cash generation relative to its net income loss. The free cash flow to net income ratio is -8.53, reinforcing strong cash flow despite net losses. The free cash flow growth rate of -15.00% suggests a decline from previous periods. Overall, cash flow management remains robust, but growth is a concern.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 189.19B | 208.35B | 241.39B | 157.74B | 105.94B |
| Gross Profit | 30.24B | 64.06B | 55.10B | 22.86B | 10.18B |
| EBITDA | 27.98B | 43.50B | 59.47B | 32.55B | 14.54B |
| Net Income | 381.00M | 15.24B | -1.36B | 7.57B | -20.73B |
Balance Sheet | |||||
| Total Assets | 282.23B | 280.29B | 288.12B | 287.27B | 267.65B |
| Cash, Cash Equivalents and Short-Term Investments | 34.52B | 28.59B | 29.77B | 30.96B | 29.53B |
| Total Debt | 71.55B | 63.08B | 55.49B | 69.79B | 81.93B |
| Total Liabilities | 203.91B | 194.80B | 205.13B | 196.83B | 182.09B |
| Stockholders Equity | 59.25B | 70.28B | 67.55B | 75.46B | 71.25B |
Cash Flow | |||||
| Free Cash Flow | 12.00B | 17.75B | 28.86B | 12.72B | -144.00M |
| Operating Cash Flow | 27.30B | 32.04B | 40.93B | 23.61B | 12.16B |
| Investing Cash Flow | -13.25B | -14.87B | -13.71B | -5.69B | -7.86B |
| Financing Cash Flow | -7.30B | -13.36B | -28.02B | -18.08B | 3.96B |
BP plc Technical Analysis
Neutral
167.00
Price Trends
164.75
Positive
158.57
Positive
152.84
Positive
Market Momentum
0.48
Positive
50.87
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP.B, the sentiment is Neutral. The current price of 167 is below the 20-day moving average (MA) of 168.30, above the 50-day MA of 164.75, and above the 200-day MA of 152.84, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BP.B.
BP plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | £156.02B | 15.49 | 7.41% | 0.16% | -4.09% | -20.79% | |
81 Outperform | £1.72B | 11.57 | 17.50% | 0.64% | -9.80% | -1.98% | |
79 Outperform | £1.41B | 10.23 | 9.56% | 2.21% | 89.44% | 540.95% | |
71 Outperform | £61.65B | ― | 3.17% | ― | ― | ||
70 Outperform | £3.37B | 21.62 | -2.87% | 5.78% | 29.33% | ― | |
67 Neutral | £2.75B | 15.84 | -5.65% | 16.01% | 1.04% | -156.59% | |
59 Neutral | £7.36B | -2.81 | -10.36% | 104.87% | -1.03% | -98.53% |
* Energy Sector Average
Performance Comparison
GB:BP.B
BP plc
166.50
19.42
13.20%
GB:SEPL
SEPLAT Petroleum Development
244.00
63.30
35.03%
GB:HBR
Harbour Energy
199.30
-71.09
-26.29%
GB:SHEL
Shell (UK)
2,667.50
-0.29
-0.01%
GB:ENOG
Energean
922.00
-71.13
-7.16%
GB:ITH
Ithaca Energy PLC
166.40
61.72
58.96%
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.