BP PLC (GB:BP.B)
LSE:BP.B
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BP plc
(LSE:BP.B)
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Rating:62Neutral
Price Target:
170.00 p
▲(0.59% Upside)
Action:Reiterated
Date:05/04/26
The score is primarily driven by mixed financial performance: resilient cash generation is offset by near-breakeven net profitability and higher leverage. Valuation is a major positive with a very low P/E and high dividend yield, while technicals are neutral and the latest earnings call was moderately positive but flagged net-debt and margin headwinds.
Positive Factors
Cash generation
Sustained, sizable free cash flow gives BP durable capacity to fund capex, service obligations and pursue targeted deleveraging without relying on volatile accounting earnings. Over a 2–3 year horizon, strong FCF underpins balance‑sheet repair and optionality on portfolio actions.
Negative Factors
Elevated leverage & obligations
Higher leverage and large scheduled obligations constrain financial flexibility and make deleveraging dependent on sustained FCF and timely divestment proceeds. Over 2–3 years, balance‑sheet repair is a binding priority that limits capital allocation freedom.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained, sizable free cash flow gives BP durable capacity to fund capex, service obligations and pursue targeted deleveraging without relying on volatile accounting earnings. Over a 2–3 year horizon, strong FCF underpins balance‑sheet repair and optionality on portfolio actions.
Read all positive factors
BP plc (BP.B) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£75.71B
Dividend Yield5.42%
Average Volume (3M)3.57K
Price to Earnings (P/E)32.0
Beta (1Y)0.19
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.19
Shares Outstanding5,473,414
10 Day Avg. Volume5,154
30 Day Avg. Volume3,567
Financial Highlights & Ratios
PEG Ratio-19.42
Price to Book (P/B)1.71
Price to Sales (P/S)0.48
P/FCF Ratio8.05
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 ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BP plc Business Overview & Revenue Model
Company Description
BP p.l.c., an energy company founded in 1908 and headquartered in London, United Kingdom, delivers a broad spectrum of carbon-related products and services. Its operations are structured across three primary divisions: Gas & Low Carbon Energy, Oil...
How the Company Makes Money
BP makes money primarily by producing, trading, refining, and selling hydrocarbons and related products, alongside earnings from its retail and low-carbon activities. Major revenue and earnings streams include: (1) Upstream (oil and gas production...
BP plc Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture — strong production (2.3m boe/d), high refining availability (>96%), record quarterly throughput (>1.5m b/d), $3.2bn underlying net income and $8.9bn operating cash flow. Management emphasized progress on portfolio simplification, structural cost reductions, exploration successes (14 discoveries since 2025) and a plan to reduce corporate hybrids by >$4bn. Offsetting negatives include a $6bn working capital build that increased net debt, realized refining margins materially below indicators (potentially >$5/bbl headwind), geopolitical/shipping disruptions in the Middle East, some mixed trading performance in gas, and appraisal/execution risk on very large discoveries. Overall, the positive operational results, clear deleveraging plan and strategic progress outweigh the near-term liquidity and margin headwinds.Positive Updates
Strong Production
Total production of 2.3 million barrels of oil equivalent per day (boe/d), supported by high plant reliability and higher production in the Gulf of America and BPX.
Negative Updates
Working Capital Build and Net Debt Increase
A $6.0 billion working capital build drove an increase in net debt this quarter, partially offsetting strong operating cash flow and prompting continued emphasis on deleveraging.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Production
Total production of 2.3 million barrels of oil equivalent per day (boe/d), supported by high plant reliability and higher production in the Gulf of America and BPX.
Read all positive updates
Company Guidance
Management reiterated a tightening of capital discipline and clear numeric targets: 1Q26 production was 2.3 million boe/d, underlying net income was $3.2bn and operating cash flow was $8.9bn before a $6bn working‑capital build that largely drove a quarter‑on‑quarter rise in net debt; refining availability was above the 96% target and throughput topped 1.5 million bpd (the highest quarterly throughput in four years); BP reported 14 discoveries since start‑2025 (including the 8 billion‑barrel‑in‑place Bumerangue), set a 100% reserve‑replacement goal by 2027 (last year ~90% replacement, ~76% ex‑price), and noted LNG volumes of ~27 mtpa strategic plus ~15 mtpa merchant with >90% of cargoes redirectable. On the balance sheet and cost side they have a CapEx frame of $13–15bn for the next two years (tightened to ~ $13bn this year), a net‑debt focus of $14–18bn, have delivered another $300m of structural costs (70% of a 4–5% target), paused buybacks to accelerate deleverage, and plan to reduce the corporate hybrid stack by over $4bn by end‑2027 (with callable tranches in 2026–27).BP plc Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
51
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 193.54B | 189.34B | 185.23B | 213.67B | 240.86B | 154.71B |
| Gross Profit | 42.27B | 33.53B | 28.11B | 47.39B | 54.05B | 21.65B |
| EBITDA | 34.84B | 31.07B | 25.11B | 42.89B | 29.37B | 27.82B |
| Net Income | 3.13B | 55.00M | 382.83M | 15.50B | -2.48B | 7.42B |
Balance Sheet | ||||||
| Total Assets | 301.73B | 278.53B | 282.23B | 280.29B | 288.12B | 287.27B |
| Cash, Cash Equivalents and Short-Term Investments | 35.76B | 36.71B | 34.52B | 28.59B | 29.77B | 30.96B |
| Total Debt | 74.17B | 72.53B | 71.55B | 63.08B | 55.49B | 69.79B |
| Total Liabilities | 224.77B | 204.53B | 203.91B | 194.80B | 205.13B | 196.83B |
| Stockholders Equity | 55.96B | 53.05B | 59.25B | 70.28B | 67.55B | 75.46B |
Cash Flow | ||||||
| Free Cash Flow | 11.42B | 11.27B | 12.00B | 17.75B | 28.86B | 12.72B |
| Operating Cash Flow | 24.44B | 24.49B | 27.30B | 32.04B | 40.93B | 23.61B |
| Investing Cash Flow | -11.17B | -11.50B | -13.25B | -14.87B | -13.71B | -5.69B |
| Financing Cash Flow | -11.41B | -15.88B | -7.30B | -13.36B | -28.02B | -18.08B |
BP plc Technical Analysis
Negative
169.00
Price Trends
160.17
Negative
161.62
Negative
161.28
Negative
Market Momentum
-0.09
Negative
46.04
Neutral
40.00
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 169 is above the 20-day moving average (MA) of 160.00, above the 50-day MA of 160.17, and above the 200-day MA of 161.28, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | £2.86B | 21.39 | 9.72% | 5.64% | 49.70% | -5.56% | |
69 Neutral | £4.22B | -23.64 | -4.05% | 8.77% | 57.55% | -54.80% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | £164.42B | 11.86 | 10.58% | 4.00% | -9.84% | 41.13% | |
64 Neutral | £3.68B | 20.19 | 9.33% | 14.05% | 36.10% | ― | |
62 Neutral | £75.71B | 32.01 | 5.52% | 5.42% | ― | ― | |
58 Neutral | £1.26B | -6.41 | -65.81% | 10.99% | 27.35% | -228.25% |
* Energy Sector Average
GB:BP.B
BP plc
161.00
-4.40
-2.66%
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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.