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BP PLC (GB:BP.B)
LSE:BP.B
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BP plc
(LSE:BP.B)
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Rating:68Neutral
Price Target:
183.00p
▲(11.25% Upside)
BP's overall stock score reflects a mix of strengths and challenges. The most significant factor is the positive sentiment from the recent earnings call, highlighting strong operational performance and strategic progress. Financial performance presents some risks due to declining revenues and high leverage, but operational efficiency and cash conversion remain strengths. Technical analysis and valuation provide moderate support, with a high dividend yield being a key attraction.
BP plc (BP.B) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£69.57B
Dividend Yield5.47%
Average Volume (3M)3.57K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)N/A
Shares Outstanding5,473,414
10 Day Avg. Volume5,154
30 Day Avg. Volume3,567
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)0.52
Price to Sales (P/S)0.16
P/FCF Ratio2.56
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 ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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. The company sells crude oil and natural gas produced from its extensive global operations. Additionally, BP earns significant revenue from refining oil into various petroleum products and from the sale of these products through its retail network and commercial channels. The company's revenue model is supplemented by its investments in renewable energy, which are increasingly contributing to its earnings as the world shifts towards sustainable energy sources. Strategic partnerships with governments and other companies in energy projects also play a crucial role in enhancing BP's revenue streams.
BP plc Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with BP showing strong operational and financial performance, increased production, successful exploration, and strategic progress in divestments. However, challenges like weaker trading performance and unresolved arbitration cases were noted.Q3-2025 Updates
Positive Updates
Strong Operational and Financial Performance
BP reported underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion for the third quarter. Operating cash flow was $7.8 billion, supporting a growth target for adjusted free cash flow growth of 20% CAGR from 2025 to 2027.
Upstream Production and Reliability
Upstream production increased by around 3% quarter-on-quarter with upstream plant reliability at around 97%, leading to upgraded full-year production guidance.
Record Performance in Downstream
Underlying earnings in the first 9 months were around 40% higher than the same period in 2024. The company delivered its highest 3Q on record in the customers segment.
Exploration Success
BP has had 12 exploration discoveries in 2025, including Bumerangue in Brazil. The company plans to drill an appraisal well and perform a flow test on Bumerangue by the end of next year.
Progress on Strategic Divestments
BP is making good progress on its $20 billion divestment proceeds target, upgrading its proceeds guidance to around $5 billion.
AI and Technological Advancements
BP is making significant progress in AI deployment with examples such as kit detection and well planning improvements, leading to higher production and efficiency.
Negative Updates
Weak Trading Performance
BP reported weaker trading performance in the third quarter although trading was in line with the previous year for the first nine months.
Venture Global Arbitration
BP won an LNG arbitration case but the damages phase is still being organized, with no specific timeline or confirmed amount disclosed.
Company Guidance
During BP's Third Quarter 2025 Results Call, Murray Auchincloss highlighted the company's strong operational performance and strategic progress. BP reported underlying pretax earnings of $5.3 billion and underlying net income of $2.2 billion, with operating cash flow reaching $7.8 billion for the quarter. This positions BP well on track to achieve its adjusted free cash flow growth target of 20% CAGR from 2025 to 2027. Upstream production increased by about 3% quarter-on-quarter, supported by plant reliability of around 97%, and refining availability also reached nearly 97%, marking the best quarter in 20 years. The company has started six new major oil and gas projects in 2025, four of which were ahead of schedule, and has made 12 exploration discoveries this year. BP is making progress towards its $20 billion divestment proceeds target, having upgraded its proceeds guidance to around $5 billion. The company remains disciplined in capital investment, with organic CapEx expected to stay below $14 billion, and is focused on reducing costs, growing cash flow and returns, and strengthening the balance sheet to enhance shareholder value.BP plc Financial Statement Overview
Summary
BP plc faces a challenging financial environment with declining revenues and profitability pressures. The company maintains operational efficiency but is experiencing increased leverage and cash flow challenges. While there are strengths in cash conversion and operational margins, the high debt levels and negative profitability metrics pose risks that need to be addressed for future stability.Income Statement
BP plc's income statement reflects a challenging period with declining revenue and profitability. The TTM data shows a significant revenue decline of 35.9% and a negative net profit margin of -0.64%, indicating financial pressure. However, the company maintains a positive EBIT margin of 5.45% and EBITDA margin of 14.42%, suggesting operational efficiency. Historical data shows fluctuating revenue growth rates, with a strong growth in 2022 but a decline in subsequent years.55
Neutral
Balance Sheet
BP's balance sheet shows a relatively high debt-to-equity ratio of 1.22 in the TTM period, indicating significant leverage. The equity ratio stands at 20.8%, suggesting a moderate level of equity financing. Return on equity is negative at -2.02%, reflecting recent profitability challenges. Historically, the company has managed its debt levels well, but recent trends indicate increased financial risk.60
Neutral
Cash Flow
The cash flow statement reveals a decline in free cash flow growth of -15.72% in the TTM period, highlighting cash generation challenges. However, the operating cash flow to net income ratio is strong at 39.16%, indicating good cash conversion. The free cash flow to net income ratio of 40.57% suggests that BP is generating sufficient cash relative to its net income, despite recent declines.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 186.54B | 189.19B | 208.35B | 241.39B | 157.74B | 105.94B |
| Gross Profit | 30.30B | 30.24B | 64.06B | 55.10B | 22.86B | 10.18B |
| EBITDA | 29.17B | 27.98B | 43.50B | 59.47B | 32.55B | -6.97B |
| Net Income | 563.00M | 381.00M | 15.24B | -1.36B | 7.57B | -20.73B |
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
Negative
164.50
Price Trends
164.99
Negative
166.19
Negative
159.89
Positive
Market Momentum
-0.10
Negative
48.71
Neutral
43.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP.B, the sentiment is Negative. The current price of 164.5 is below the 20-day moving average (MA) of 164.55, below the 50-day MA of 164.99, and above the 200-day MA of 159.89, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BP.B.
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% | 3.69% | -9.21% | -2.61% | |
70 Outperform | £1.75B | 10.79 | 12.03% | 3.39% | 159.13% | 143.76% | |
68 Neutral | £69.57B | ― | ― | 5.47% | ― | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
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.B
BP plc
164.50
16.48
11.13%
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GB:ENOG
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GB:ITH
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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.