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BP PLC BP.

Morningstar Rating
GBX 472.05 +0.10 (0.02%)
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Company Report

BP Earnings: Earnings Fall on Lower Commodity Prices; Management Turns Over, but Strategy Remains

BP's third-quarter earnings fell from the year before, while failing to meet market expectations, primarily due to lower oil and gas prices and weak gas and marketing trading results. Underlying replacement cost profit fell to $3.3 billion from $8.2 billion a year ago while operating cash flow increased to $8.7 billion from $8.3 billion the year before, due to working capital effects. Production increased 1.3% to 2,328 barrels of oil equivalent per day from the year before. BP repurchased $2.0 billion in shares during the quarter, including its $1.5 billion program announced last quarter as well as additional repurchases to offset dilution. Management will maintain the $1.5 billion repurchase rate in the fourth quarter. Gearing fell to 20% during the quarter but remains at the upper end of the peer group range.

Price vs Fair Value

BP. is trading at a 16% discount.
Price
GBX 471.97
Fair Value
GBX 389.00
Uncertainty
High
1-Star Price
GBX 339.00
5-Star Price
GBX 356.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

BP is moving early to adapt to the coming energy transition. Its aggressive move away from oil investments should leave it better positioned than peers in the next decade.

Bears

BP’s relative lack of oil production growth leaves it at a disadvantage as oil demand will continue to grow for another decade while current industry underinvestment will result in higher-than-expected prices.

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News

Trading Information

Previous Close Price
GBX 471.95
Day Range
GBX 464.75474.95
52-Week Range
GBX 4.75570.57
Bid/Ask
GBX 464.00 / GBX 475.00
Market Cap
GBX 7.99 Tril
Volume/Avg
22.0 Mil / 43.9 Mil

Key Statistics

Price/Earnings (Normalized)
6.56
Price/Sales
0.46
Dividend Yield
4.73%
Dividend Yield (Forward)
4.73%
Total Yield
14.75%

Company Profile

BP is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.1 million barrels of liquids and 6.9 billion cubic feet of natural gas per day. At the end of 2022, reserves stood at 7.2 billion barrels of oil equivalent, 56% of which are liquids. The company operates refineries with a capacity of 1.6 million barrels of oil per day. BP also holds a 20% ownership interest in Rosneft, which it plans to exit.
Sector
Energy
Industry
Oil & Gas Integrated
Stock Style Box
Large Value
Total Number of Employees
67,600

Competitors

Valuation

Metric
BP.
XOM
CVX
Price/Earnings (Normalized)
6.569.8110.57
Price/Book Value
1.362.031.65
Price/Sales
0.461.231.35
Price/Cash Flow
2.156.917.05
Price/Earnings
BP.
XOM
CVX

Financial Strength

Metric
BP.
XOM
CVX
Quick Ratio
0.741.050.84
Current Ratio
1.211.421.25
Interest Coverage
11.7478.8177.06
Quick Ratio
BP.
XOM
CVX

Profitability

Metric
BP.
XOM
CVX
Return on Assets (Normalized)
5.56%11.56%10.12%
Return on Equity (Normalized)
23.00%21.79%16.29%
Return on Invested Capital (Normalized)
12.36%17.60%14.39%
Return on Assets
BP.
XOM
CVX

Oil & Gas Integrated Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
XOM
Exxon Mobil CorpFfjfl$409.4 Bil
CVX
Chevron CorpBvjnkb$273.5 Bil
RYDAF
Shell PLCGvpq$211.2 Bil
SHEL
Shell PLC ADR (Representing - Ordinary Shares)Njh$211.2 Bil
PCCYF
PetroChina Co Ltd Class HKqbbv$178.1 Bil
TTE
TotalEnergies SE ADRMcff$159.1 Bil
BP
BP PLC ADRCpwh$101.4 Bil
PBR
Petroleo Brasileiro SA Petrobras ADRHhff$94.8 Bil
EQNR
Equinor ASA ADRWhfwj$92.4 Bil
E
Eni SpA ADRRlcx$53.2 Bil