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BP p.l.c. (GB:BP)
:BP
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BP p.l.c.
(LSE:BP)
63Neutral
Positive Factors
Shareholder Returns
Elliott's involvement could result in board changes and a focus on maximizing free cash flow generation, leading to increased shareholder returns.
Strategy and Operations
Activist investor Elliott has acquired a significant stake in BP, which is expected to lead to positive changes in the company's strategy and operations.
Negative Factors
Comparative Performance
BP remains a less attractive proposition compared to peers like Shell and TotalEnergies.
Financial Performance
BP's refining sector was disappointing in the 4Q, with a $0.8bn loss.
Strategy Reset
Disappointment from BP’s strategy reset may add momentum to activist calls for more radical changes.
BP p.l.c. (BP) vs. S&P 500 (SPY)
Market Cap
£69.92B
Dividend Yield5.49%
Average Volume (3M)54.04M
Price to Earnings (P/E)237.0
Beta (1Y)0.72
Revenue Growth-12.44%
EPS Growth-98.02%
CountryUK
Employees100,500
SectorEnergy
Sector Strength87
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.01
Shares Outstanding16,145,253,000
10 Day Avg. Volume53,099,405
30 Day Avg. Volume54,042,575
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.45
Price to Cash Flow (P/CF)5.80
P/FCF Ratio10.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
502.50pPrice Target Upside12.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
BP p.l.c. Business Overview & Revenue Model
Company DescriptionBP p.l.c. (BP) is a global energy company headquartered in London, United Kingdom. It operates across multiple sectors, including exploration and production, refining, distribution and marketing, petrochemicals, power generation, and trading. BP is one of the world's largest integrated oil and gas companies, offering a range of products such as fuels, lubricants, and petrochemical products. It is also increasingly investing in renewable energy sources like wind, solar, and biofuels as part of its transition towards a more sustainable energy future.
How the Company Makes MoneyBP makes money primarily through the exploration, extraction, and sale of oil and natural gas. Its upstream operations involve locating and developing oil and gas resources, which generate revenue through the sale of crude oil, natural gas, and natural gas liquids. In its downstream operations, BP refines crude oil into petroleum products such as gasoline, diesel, and jet fuel, which are sold to consumers and businesses. BP also operates a substantial trading division that buys and sells energy commodities, contributing to its earnings. Moreover, BP's growing investments in renewable energy and low-carbon technologies are aimed at diversifying its revenue streams and capitalizing on the global shift towards sustainable energy solutions. Strategic partnerships and joint ventures with other energy companies and investments in technology further enhance BP's ability to generate revenue.
BP p.l.c. Financial Statement Overview
Summary
BP faced a challenging financial year marked by declining revenues and profitability. While the income statement shows reduced margins and growth, the balance sheet reflects a stable financial position with moderate leverage. The cash flow statement indicates strong operating cash flows, suggesting liquidity and operational efficiency. Overall, BP's financial health is mixed, with strengths in cash flow and stability, but concerns regarding profitability and revenue growth.Income Statement
BP's income statement reveals a challenging year with a decline in total revenue from $208.4 billion to $189.2 billion, resulting in a negative revenue growth rate of -9.2%. The gross profit margin decreased from 30.7% to 16.0%, and the net profit margin fell significantly from 7.3% to 0.2%. EBITDA margin also saw a decline to 15.3% from 20.9%. These figures indicate pressure on profitability despite a strong EBITDA margin, reflective of industry headwinds.65
Positive
Balance Sheet
BP's balance sheet demonstrates financial stability with a debt-to-equity ratio of 1.21, showing a manageable level of leverage. The equity ratio stands at 21.0%, which suggests a moderate level of equity financing. However, the return on equity (ROE) dropped significantly to 0.6% from 21.7%, indicating a sharp decline in profitability relative to shareholder equity.70
Positive
Cash Flow
BP's cash flow performance remains robust with an operating cash flow of $27.3 billion. The free cash flow to net income ratio is notably high, reflecting effective cash generation despite low net income. The free cash flow has declined from previous years, but the company still maintains a healthy cash generation capability, providing some resilience against income statement pressures.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 | EBIT |
| 0.00 | 46.98B | 44.76B | 15.09B | -346.00M | EBITDA |
| 28.85B | 43.50B | 59.47B | 32.55B | 14.54B | Net Income Common Stockholders |
| 381.00M | 15.24B | -1.36B | 7.57B | -20.73B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 39.37B | 28.59B | 29.77B | 30.96B | 29.53B | Total Assets |
| 282.23B | 280.29B | 288.12B | 287.27B | 267.65B | Total Debt |
| 71.55B | 63.08B | 55.49B | 69.79B | 81.93B | Net Debt |
| 32.34B | 35.33B | 26.30B | 39.11B | 52.73B | 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 p.l.c. Technical Analysis
Positive
447.00
Price Trends
431.50
Positive
408.38
Positive
411.86
Positive
Market Momentum
4.14
Negative
60.16
Neutral
82.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Positive. The current price of 447 is above the 20-day moving average (MA) of 429.04, above the 50-day MA of 431.50, and above the 200-day MA of 411.86, indicating a bullish trend. The MACD of 4.14 indicates Negative momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 82.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BP.
BP p.l.c. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Performance Comparison
GB:BP
BP p.l.c.
447.00
-21.88
-4.67%
GB:CNE
Capricorn Energy PLC
257.00
82.94
47.65%
GB:ENQ
Enquest
13.34
-0.76
-5.39%
GB:HBR
Harbour Energy
206.30
-50.32
-19.61%
GB:TLW
Tullow Oil
17.11
-14.05
-45.09%
GB:TTE
TotalEnergies SE
60.65
0.43
0.71%
BP p.l.c. Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -2.57% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic progress, increased production, and strong trading performance. However, challenges in refining and biofuels margins were significant concerns. The sentiment is balanced with both positive achievements and notable challenges.Highlights
Upstream Production Increase
Upstream production was around 2.36 million barrels per day, up 2% year-over-year with plant reliability above 95%.
Dividend and Share Buybacks
BP grew its dividend per share by 10% and announced $7 billion of share buybacks, including a $1.75 billion announced recently.
Strategic Progress and New Projects
Significant strategic progress with 10 new FIDs, new access to Iraq and India, and acquiring full ownership of bp bioenergy and Lightsource bp.
Cost Reduction Achievements
Delivered $750 million of structural cost reductions this year.
Trading Performance
Maintained a 4% average uplift to group ROACE over the past 5 years despite lack of volatility, indicating strong trading performance.
Lowlights
Refining Challenges
Experienced a difficult year in refining with a widening outage in 1Q and a challenging margin environment.
Impact of Weak Biofuels Margins
Impacted by weaker biofuels margins and a trucking recession's impact on TravelCenters of America.
Uncertain Impact of U.S. Tariffs on Canadian Crude
Uncertainty regarding the impact of U.S. tariffs on Canadian crude on Whiting's refining margins.
Biofuels Market Challenges
Biofuels margins particularly weak due to rollbacks in Nordic countries and oversupply from Asia.
Company Guidance
During BP's fourth quarter and full-year 2024 results call, several key metrics and strategic actions were highlighted. BP reported an upstream production of approximately 2.36 million barrels per day, reflecting a 2% increase, with plant reliability exceeding 95%. Despite challenges in refining due to a widening outage in the first quarter and a tough margin environment, BP maintained a focus on improving performance. Trading activities provided an average 4% uplift to group ROACE over the past five years. The company achieved a 10% growth in dividend per share and announced $7 billion in share buybacks, including a $1.75 billion buyback revealed during the call. BP also made significant strategic progress with 10 new final investment decisions, acquisitions, and divestitures, setting the stage for a fundamental strategy reset to be detailed in an upcoming Capital Markets event.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.