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BP PLC (GB:BP.B)
LSE:BP.B
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BP plc
(LSE:BP.B)
Rating:65Neutral
Price Target:
179.00p
▲(7.51% Upside)
BP plc (BP.B) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£65.97B
Dividend Yield5.41%
Average Volume (3M)3.42K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength59
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)N/A
Shares Outstanding5,473,414
10 Day Avg. Volume2,585
30 Day Avg. Volume3,417
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£179.00Price Target Upside7.51% 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. 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:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong operational and strategic performance, with significant new project startups, exploration successes, and an increase in earnings. However, challenges such as tight diesel margins, a high working capital build, and impairments present areas of concern. Despite these challenges, the progress in upstream projects, cost reductions, and refining availability indicates a positive trajectory.Q2-2025 Updates
Positive Updates
Strong Upstream Performance
BP brought 5 new oil and gas major projects on stream, sanctioned 4 more, and made 10 exploration discoveries, including a significant one in the Bumerangue Block in Brazil.
Increased Earnings and Dividends
Underlying earnings in the customer segment are up around 50% compared to the previous year. BP announced a dividend increase of 4% and a $750 million share buyback for the second quarter.
Record Refining Availability
BP reported a refining availability of 96.4% for the quarter, the best since 2006, with the first half of the year at 96.3%, the best since metrics began.
Cost Reductions Progress
BP has delivered approximately $1.7 billion of structural cost reductions since the start of 2024, aiming for $4 billion to $5 billion in total.
Strong Exploration Year
BP's exploration success includes 10 commercial discoveries, contributing to the best year for discoveries in a decade.
Negative Updates
Diesel Margin Challenges
BP reported tight diesel margins affecting the midstream trading and TravelCenters of America (TA) business, requiring actions to improve profitability.
High Working Capital Build
BP experienced a $4.7 billion working capital build in the first half of the year, affecting net debt reduction.
Impairments Across Businesses
BP recorded $1.2 billion in impairments, including in customer and products, gas and low carbon sectors, due to strategic decisions and market conditions.
Company Guidance
During BP's second quarter 2025 results call, the company reported strong operational and strategic performance, highlighting a reliability rate exceeding 96% across both upstream and downstream operations. BP brought five new major oil and gas projects online, sanctioned four more, and made ten exploration discoveries, marking the best year for discoveries in recent memory. The company announced significant financial outcomes, including a 50% increase in underlying earnings in its customer business compared to the previous year and around $3 billion in expected proceeds from completed or announced divestments. BP also achieved approximately $1.7 billion in structural cost reductions since early 2024. Shareholder returns were bolstered by a 4% increase in dividend per ordinary share to $0.0832 and a $750 million share buyback for the second quarter. The company remains focused on executing its 12-quarter plan with a strong emphasis on digital and technology advancements, particularly in data management and artificial intelligence, to drive further efficiencies and operational excellence.BP plc Financial Statement Overview
Summary
BP shows operational efficiency with solid gross and EBIT margins, but faces challenges with negative net profitability and declining revenue. The balance sheet is stable with manageable debt, though ROE is negative. Cash flow is strong, supporting liquidity despite profit challenges.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 | 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 | 14.54B |
| 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
Positive
166.50
Price Trends
167.07
Negative
162.98
Positive
155.43
Positive
Market Momentum
-0.22
Positive
51.28
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 Positive. The current price of 166.5 is above the 20-day moving average (MA) of 166.12, below the 50-day MA of 167.07, and above the 200-day MA of 155.43, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 51.28 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 Positive sentiment for GB:BP.B.
BP plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £1.52B | 14.04 | 7.92% | 3.76% | 118.04% | 65.66% | |
74 Outperform | £156.31B | 15.59 | 7.54% | 4.11% | -8.55% | -22.62% | |
71 Outperform | £3.80B | 21.62 | -11.32% | 7.80% | 123.03% | ― | |
70 Outperform | £3.11B | 15.84 | -7.04% | 14.24% | 31.96% | -159.27% | |
67 Neutral | £1.68B | 11.36 | 17.50% | 5.68% | -9.80% | -1.98% | |
65 Neutral | $15.28B | 7.48 | 3.19% | 5.33% | 4.10% | -60.58% | |
65 Neutral | £65.97B | ― | 5.41% | ― | ― |
* Energy Sector Average
Performance Comparison
GB:BP.B
BP plc
166.50
15.17
10.02%
GB:HBR
Harbour Energy
224.20
-19.13
-7.86%
GB:SHEL
Shell (UK)
2,627.50
185.25
7.59%
GB:SEPL
SEPLAT Petroleum Development
252.50
82.13
48.21%
GB:ENOG
Energean
892.50
74.42
9.10%
GB:ITH
Ithaca Energy PLC
185.60
96.29
107.82%
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.