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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:69Neutral
Price Target:
179.00p
▲(7.83% Upside)
BP's overall stock score is driven by strong earnings call results and resilient financial performance, despite technical analysis indicating potential bearish momentum. The company's strategic progress and high dividend yield contribute positively, although profitability and leverage challenges remain.
Positive Factors
Operational Efficiency
High operational efficiency with 97% plant reliability enhances production stability and supports long-term growth, reducing operational risks.
Cash Flow Generation
Strong cash flow generation provides financial flexibility for investments and debt management, supporting sustainable growth and shareholder returns.
Exploration Success
Successful exploration enhances resource base, supporting long-term production growth and strategic positioning in key markets.
Negative Factors
Profitability Challenges
Persistently low net margins indicate challenges in cost management and pricing power, potentially impacting long-term profitability.
High Leverage
High leverage can constrain financial flexibility and increase risk, especially in volatile market conditions, affecting long-term stability.
Weak Trading Performance
Weak trading performance can affect revenue stability and profitability, highlighting the need for improved risk management and market strategies.
BP plc (BP.B) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£65.42B
Dividend Yield5.42%
Average Volume (3M)3.57K
Price to Earnings (P/E)―
Beta (1Y)0.15
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 through multiple key streams: the exploration and production of oil and natural gas, where it earns from selling crude oil and gas to markets worldwide. The refining segment produces fuels and petrochemicals, contributing significantly to its earnings through the sale of gasoline, diesel, and other refined products. Additionally, BP's retail operations involve selling fuel at service stations and convenience stores, which further adds to revenue. The company is also developing a portfolio in renewable energy, which is expected to grow and contribute to future earnings. Significant partnerships with other energy companies and investments in technology for energy efficiency and renewable projects are important factors that enhance BP's financial performance.
BP plc Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
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 demonstrates resilience in cash flow generation and operational efficiency, but faces challenges in profitability and leverage. The company has shown a capacity for revenue recovery, yet needs to focus on improving net margins and managing debt to enhance financial health.Income Statement
BP plc has shown a mixed performance in its income statement. The TTM data indicates a modest gross profit margin of 16.17% and a low net profit margin of 0.33%, reflecting challenges in profitability. However, the EBIT and EBITDA margins are relatively healthy at 6.21% and 15.43%, respectively. Revenue growth has been volatile, with a significant decline in 2023 but a strong recovery in the TTM period. Overall, while there are signs of operational efficiency, profitability remains a concern.65
Positive
Balance Sheet
BP's balance sheet shows a high debt-to-equity ratio of 1.27 in the TTM period, indicating significant leverage. The return on equity is low at 1.07%, suggesting limited returns for shareholders. However, the equity ratio is stable, reflecting a balanced asset structure. The company needs to manage its debt levels to improve financial stability.70
Positive
Cash Flow
The cash flow statement reveals a positive trend in free cash flow growth, with a 24.23% increase in the TTM period. The operating cash flow to net income ratio is strong at 27.70%, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is moderate at 36.88%, suggesting room for improvement in cash profitability.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 187.67B | 189.19B | 208.35B | 241.39B | 157.74B | 105.94B |
| Gross Profit | 36.51B | 30.24B | 64.06B | 55.10B | 22.86B | 10.18B |
| EBITDA | 31.63B | 27.98B | 43.50B | 59.47B | 32.55B | -6.97B |
| Net Income | 1.52B | 381.00M | 15.24B | -1.36B | 7.57B | -20.73B |
Balance Sheet | ||||||
| Total Assets | 280.46B | 282.23B | 280.29B | 288.12B | 287.27B | 267.65B |
| Cash, Cash Equivalents and Short-Term Investments | 35.05B | 34.52B | 28.59B | 29.77B | 30.96B | 29.53B |
| Total Debt | 74.82B | 71.55B | 63.08B | 55.49B | 69.79B | 81.93B |
| Total Liabilities | 202.81B | 203.91B | 194.80B | 205.13B | 196.83B | 182.09B |
| Stockholders Equity | 58.24B | 59.25B | 70.28B | 67.55B | 75.46B | 71.25B |
Cash Flow | ||||||
| Free Cash Flow | 10.67B | 12.00B | 17.75B | 28.86B | 12.72B | -144.00M |
| Operating Cash Flow | 24.30B | 27.30B | 32.04B | 40.93B | 23.61B | 12.16B |
| Investing Cash Flow | -11.24B | -13.25B | -14.87B | -13.71B | -5.69B | -7.86B |
| Financing Cash Flow | -12.51B | -7.30B | -13.36B | -28.02B | -18.08B | 3.96B |
BP plc Technical Analysis
Positive
166.00
Price Trends
164.43
Positive
165.07
Positive
162.32
Positive
Market Momentum
0.66
Negative
53.57
Neutral
62.50
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 is above the 20-day moving average (MA) of 164.38, above the 50-day MA of 164.43, and above the 200-day MA of 162.32, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £154.22B | 14.41 | 8.25% | 4.00% | -9.21% | -2.61% | |
73 Outperform | £1.61B | 10.01 | 17.24% | 10.99% | -2.66% | 0.11% | |
71 Outperform | £1.51B | 9.63 | 12.03% | 5.64% | 159.13% | 143.76% | |
69 Neutral | £65.42B | ― | ― | 5.42% | ― | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | £3.37B | -8.75 | -11.32% | 8.77% | 123.03% | -330.89% | |
54 Neutral | £2.68B | -30.77 | -4.67% | 14.05% | 63.10% | -161.03% |
* Energy Sector Average
GB:BP.B
BP plc
166.00
19.38
13.22%
GB:HBR
Harbour Energy
195.90
-27.68
-12.38%
GB:SHEL
Shell (UK)
2,702.00
357.87
15.27%
GB:SEPL
SEPLAT Petroleum Development
259.50
81.74
45.98%
GB:ENOG
Energean
884.00
-35.80
-3.89%
GB:ITH
Ithaca Energy PLC
163.40
68.40
72.00%
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.