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BP plc
(LSE:BP.A)
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Rating:61Neutral
Price Target:
149.00 p
▲(6.43% Upside)
Action:Reiterated
Date:08/07/26
Overall score reflects steady financial performance led by strong cash generation, partially offset by volatile/low net profitability and elevated leverage. Technicals are largely neutral with no clear trend, while valuation is constrained by a high P/E despite a strong dividend yield. The latest earnings call adds modest support due to improving cash and balance-sheet momentum, but safety and execution risks remain notable.
Positive Factors
Strong operating and free cash flow
BP's sizable and improving TTM operating cash flow and materially positive free cash flow provide durable capacity to fund dividends, deleverage, and invest in transition projects. Strong cash generation reduces reliance on capital markets across commodity cycles.
Negative Factors
Elevated leverage reduces flexibility
A debt-to-equity ratio above 1.0 restricts BP's ability to withstand prolonged commodity downturns or pursue opportunistic investment. Elevated leverage increases interest burden and limits strategic optionality, making balance-sheet progress a key execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating and free cash flow
BP's sizable and improving TTM operating cash flow and materially positive free cash flow provide durable capacity to fund dividends, deleverage, and invest in transition projects. Strong cash generation reduces reliance on capital markets across commodity cycles.
Read all positive factors
BP plc (BP.A) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£83.40B
Dividend Yield5.71%
Average Volume (3M)6.20K
Price to Earnings (P/E)21.2
Beta (1Y)0.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees93,700
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.34
Shares Outstanding7,232,838
10 Day Avg. Volume1,956
30 Day Avg. Volume6,199
Financial Highlights & Ratios
PEG Ratio-19.58
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 integrated energy company, engages in the oil and gas business worldwide. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural g...
How the Company Makes Money
BP makes money primarily by producing, processing, trading, and selling hydrocarbons and energy-related products and services across several major business lines. Upstream: BP generates revenue from selling crude oil, natural gas, and natural gas ...
BP plc Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive near-term financial and balance-sheet momentum — strong sequential earnings (+78% underlying profit vs Q1), robust cash generation, a $7 billion reduction in financial obligations and a 4% dividend increase — alongside decisive portfolio simplification actions and disciplined capital guidance. However, material concerns remain: a fatal safety incident and increased Tier 1 events, production and refining throughput declines (down 6% and 4% vs Q1), a sizeable first-half working capital build ($7 billion) and impairments/adjusting charges that reduce reported profit. Management emphasized urgency on cost reduction, operational reliability and balance-sheet strengthening, signaling that while progress is clear, important execution and safety issues must be resolved.Positive Updates
Strong Sequential Earnings Improvement
Group underlying replacement cost profit increased to $5.7 billion in Q2; group underlying replacement cost profit before interest and tax was $10.3 billion versus $6.3 billion in Q1 (around a 63% increase in the EBIT-like measure) and group underlying profit increased by 78% versus the prior quarter.
Negative Updates
Safety and Process Safety Deterioration
A fatality occurred at the Gemlik Castrol blending plant in Turkiye in April; BP reported an increase in process safety events in H1 2026 versus H1 2025, including more Tier 1 events—management emphasized safety performance must improve.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Sequential Earnings Improvement
Group underlying replacement cost profit increased to $5.7 billion in Q2; group underlying replacement cost profit before interest and tax was $10.3 billion versus $6.3 billion in Q1 (around a 63% increase in the EBIT-like measure) and group underlying profit increased by 78% versus the prior quarter.
Read all positive updates
Company Guidance
On guidance, BP added production and throughput ranges to its forward disclosures and set full‑year CapEx at $13.5–$14.0 billion and full‑year divestment proceeds at $8–$9 billion (including ~ $6 billion from the announced Castrol transaction), while updating its full‑year underlying effective tax rate to ~35–40%. Management expects financial obligations (net debt, hybrids and Gulf of America settlement liabilities) to fall to around $39–41 billion by end‑2026 — which would deliver the $14–18 billion net‑debt target ahead of plan — and will repay $1 billion of perpetual hybrids in Q3. Key cash and liquidity metrics this quarter included total sources of cash of $13.5 billion, underlying cash generation of $12.9 billion, reported operating cash flow of $10.9 billion (after $1 billion interest and a $1 billion working‑capital build), $3.1 billion of CapEx, ~$600 million of divestment proceeds, and net debt down ~$3.1 billion to $22.3 billion; financial obligations were reduced by around $7 billion versus Q1. Working capital built $1 billion in Q2 (contributing to a H1 build of $7 billion, including a $1.1 billion Gulf of America settlement and ~$200 million decommissioning) with an expected $2–3 billion unwind in H2, and the company also noted Q2 operational throughput/production of ~2.2 million boe/d upstream and ~1.5 million bbl/d refining.BP plc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 215.60B | 189.34B | 185.23B | 213.67B | 240.86B | 154.71B |
| Gross Profit | 47.29B | 33.53B | 28.11B | 47.39B | 54.05B | 21.65B |
| EBITDA | 38.30B | 31.07B | 25.11B | 42.89B | 29.37B | 27.82B |
| Net Income | 5.39B | 55.00M | 382.83M | 15.50B | -2.48B | 7.42B |
Balance Sheet | ||||||
| Total Assets | 296.16B | 278.53B | 282.23B | 280.29B | 288.12B | 287.27B |
| Cash, Cash Equivalents and Short-Term Investments | 37.42B | 36.71B | 34.52B | 28.59B | 29.77B | 30.96B |
| Total Debt | 73.07B | 72.53B | 71.55B | 63.08B | 55.49B | 69.79B |
| Total Liabilities | 219.34B | 204.53B | 203.91B | 194.80B | 205.13B | 196.83B |
| Stockholders Equity | 58.73B | 53.05B | 59.25B | 70.28B | 67.55B | 75.46B |
Cash Flow | ||||||
| Free Cash Flow | 16.09B | 11.27B | 12.00B | 17.75B | 28.86B | 12.72B |
| Operating Cash Flow | 28.94B | 24.49B | 27.30B | 32.04B | 40.93B | 23.61B |
| Investing Cash Flow | -10.66B | -11.50B | -13.25B | -14.87B | -13.71B | -5.69B |
| Financing Cash Flow | -16.12B | -15.88B | -7.30B | -13.36B | -28.02B | -18.08B |
BP plc Technical Analysis
Negative
140.00
Price Trends
141.19
Negative
141.18
Negative
142.84
Negative
Market Momentum
-0.49
Positive
46.77
Neutral
34.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP.A, the sentiment is Negative. The current price of 140 is below the 20-day moving average (MA) of 140.58, below the 50-day MA of 141.19, and below the 200-day MA of 142.84, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 34.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BP.A.
BP plc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | £197.02B | 10.16 | 14.66% | 3.28% | 4.03% | 97.15% | |
79 Outperform | £4.37B | 19.67 | 16.13% | 2.05% | 44.51% | 104.04% | |
73 Outperform | £4.70B | 20.21 | 9.66% | 4.61% | 17.03% | ― | |
67 Neutral | £4.51B | 23.52 | 10.32% | 0.10% | 28.04% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | £83.40B | 21.15 | 9.53% | 5.71% | ― | ― | |
53 Neutral | £1.44B | -7.46 | -65.36% | 9.53% | 27.35% | -228.25% |
* Energy Sector Average
GB:BP.A
BP plc
140.00
-0.62
-0.44%
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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.