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BP plc
(LSE:BP.B)
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Rating:63Neutral
Price Target:
170.00 p
▲(7.94% Upside)
Action:Reiterated
Date:08/07/26
The score is driven mainly by improving TTM financial performance and strong cash generation, supported by modestly positive technical momentum. These positives are tempered by elevated leverage and cyclicality, a high P/E despite a strong dividend yield, and earnings-call risks around safety, operational performance, and working-capital/cost execution.
Positive Factors
Strong cash generation
Sustained high operating and free cash flow provides durable funding for dividends, debt reduction, and disciplined capex. Over 2–6 months this cash flexibility supports deleveraging plans and portfolio simplification, insulating investment capacity from short-term commodity swings.
Negative Factors
Elevated leverage
Higher debt relative to equity constrains financial flexibility and raises refinancing and interest-rate vulnerability over the medium term. Elevated leverage limits the company's ability to absorb commodity shocks and delays full strategic optionality until net-debt targets are achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high operating and free cash flow provides durable funding for dividends, debt reduction, and disciplined capex. Over 2–6 months this cash flexibility supports deleveraging plans and portfolio simplification, insulating investment capacity from short-term commodity swings.
Read all positive factors
BP plc (BP.B) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£83.40B
Dividend Yield5.77%
Average Volume (3M)2.28K
Price to Earnings (P/E)21.2
Beta (1Y)0.18
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees91,733
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.34
Shares Outstanding5,473,414
10 Day Avg. Volume886
30 Day Avg. Volume2,278
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 Plc operates as an integrated oil and gas company providing carbon products and services. It operates through the following segments: Gas and Low Carbon Energy, Oil Production and Operations, and Customers and Products. The Gas and Low Carbon E...
How the Company Makes Money
BP makes money primarily by selling energy and energy-related products and services across its integrated value chain. (1) Upstream: BP generates revenue from producing crude oil, natural gas, and natural gas liquids and selling these volumes at m...
BP plc Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call balanced strong near-term financial performance and tangible progress on cash generation, balance sheet repair and portfolio simplification against important operational and safety shortcomings. Highlights include a sizable quarter-on-quarter rise in underlying earnings (helped by trading and margins), strong cash generation ($10.9 billion reported operating cash flow; underlying cash generation $12.9 billion), a ~$3.1 billion reduction in net debt, a 4% dividend increase, and an active divestment program expected to deliver $8–9 billion this year. Key lowlights are a workplace fatality and an uptick in Tier 1 process safety events, a 6% quarter-on-quarter decline in upstream production, a 4% drop in refining throughput, a $7 billion working capital build in H1, impairments (~$800 million) and inventory losses (~$700 million), and progress on structural cost reduction not yet fully visible in earnings. Overall, positive financial momentum and clear plans to simplify and strengthen the business outweigh the material operational and safety challenges, but execution risk remains.Positive Updates
Strong underlying earnings recovery
Group underlying replacement cost profit before interest and tax rose to $10.3 billion (Q2) from $6.3 billion (Q1); group underlying replacement cost profit (post items reported) was $5.7 billion. Management reported an overall underlying profit increase of ~78% versus the prior quarter driven by stronger prices and trading.
Negative Updates
Fatality and worsening process safety
A Castrol colleague died following an incident at the Gemlik blending plant in Turkiye (April). Company reported an increase in process safety events in H1 2026 versus H1 2025, including an increase in Tier 1 events; management emphasized safety performance must improve.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong underlying earnings recovery
Group underlying replacement cost profit before interest and tax rose to $10.3 billion (Q2) from $6.3 billion (Q1); group underlying replacement cost profit (post items reported) was $5.7 billion. Management reported an overall underlying profit increase of ~78% versus the prior quarter driven by stronger prices and trading.
Read all positive updates
Company Guidance
BP added production and throughput ranges to its forward-looking guidance and gave several numeric targets: full‑year CapEx of $13.5–$14.0 billion, expected full‑year divestment proceeds of $8–$9 billion, and an updated full‑year underlying effective tax rate of ~35–40%. Management expects financial obligations to fall to about $39–$41 billion by end‑2026 and to deliver the net‑debt target of $14–$18 billion ahead of plan (including a planned $1 billion perpetual hybrid repayment in Q3). They forecast a $2–$3 billion unwind of working capital in H2 (after a first‑half working capital build of ~$7 billion and a Q2 build of ~$1 billion driven by a $1.1 billion Gulf of America settlement and ~$200 million decommissioning), and noted updated refining indicator margins following the Gelsenkirchen sale. Quarterly cash metrics cited included total sources of cash $13.5 billion, underlying cash generation $12.9 billion, reported operating cash flow $10.9 billion, Q2 divestment proceeds ~$600 million, CapEx $3.1 billion, redemption of perpetuals ~$2.9 billion (total perpetual outflow $3.1 billion), dividends paid $1.3 billion, and net debt reduced by ~$3.1 billion to $22.3 billion.BP plc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
70
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
157.50
Price Trends
157.55
Negative
156.60
Negative
157.10
Negative
Market Momentum
-0.27
Positive
45.49
Neutral
30.00
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 157.5 is below the 20-day moving average (MA) of 157.80, below the 50-day MA of 157.55, and above the 200-day MA of 157.10, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | £197.02B | 10.17 | 14.66% | 3.24% | 4.03% | 97.15% | |
73 Outperform | £4.70B | 20.22 | 9.66% | 4.53% | 17.03% | ― | |
67 Neutral | £4.51B | 23.53 | 10.32% | 0.10% | 28.04% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | £83.40B | 21.16 | 9.53% | 5.77% | ― | ― | |
61 Neutral | £4.37B | 19.68 | 16.13% | 2.05% | 44.51% | 104.04% | |
53 Neutral | £1.44B | -7.46 | -65.36% | 9.39% | 27.35% | -228.25% |
* Energy Sector Average
GB:BP.B
BP plc
156.00
-1.39
-0.88%
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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.