BP p.l.c. (BP) Stock

BP p.l.c. (BP) is a Energy stock trading at $44.59 (as of 2026-09-18). Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

BP p.l.c. supplies energy-related products and services across areas such as integrated gas and power, trading and marketing of gas and power, and production of crude oil and natural gas. It also operates wind and other low-carbon assets, including hydrogen and carbon capture and storage, and serves customers through its energy and fuels businesses.

Understand BP p.l.c.: how it makes money

BP produces crude oil, natural gas, and low-carbon energy (wind, hydrogen, carbon capture), then refines and sells those products through retail stations, Castrol lubricants, and industrial customers. Most profit comes from commodity price spreads and a trading book that has become a structural ROCE contributor, with the gas and low-carbon portfolio still ramping.

BP's profit is a spread business: revenue tracks oil and gas prices while costs sit at 92% of revenue, so headline earnings swing with the commodity cycle. The trading book and downstream retail are the structural layers that soften those swings.

Business quality (Mixed): Mixed quality: an 8.5% operating margin is thin for a company of BP's scale, ROE of 18% is respectable but commodity-dependent, and revenue is essentially flat (down 1% YoY). The strategic pivot toward gas and low-carbon adds optionality but has not yet shown up in the P&L.

Bull case

Trading lifts ROCE structurally: Management noted that trading has added approximately four percentage points to average ROCE over six years, meaning the commodity trading book is a recurring earnings stream that exists independent of BP's own production volumes.
Asset sales shrink the debt load: Castrol proceeds and ongoing cash generation are being directed toward further balance-sheet reduction, which lowers funding costs and frees cash for the 10% dividend increase and 60% buyback allocation already committed.

Bear case

Upstream output slipped six percent: Upstream production fell 6% sequentially amid maintenance, regional disruptions, and operational issues, and process-safety events including Tier 1 incidents and a contractor fatality increased. Together these point to execution risk in the very assets meant to fund the low-carbon pivot.
Inflation is outpacing cost savings: Management acknowledged that structural-cost actions have not offset inflation, acquired costs, or business complexity. With operating margin at 8.5% and revenue down 1% YoY, the cushion to absorb further price weakness in oil or gas is thin.

Valuation — source: SEC EDGAR (first-party)
Price	$44.59

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$192.55B
Net Margin	0.7%
Return on Equity	2.4%
Current Ratio	1.26
Revenue Growth (YoY)	-1.1%
EPS Growth (YoY)	-85.7%

Valuation vs Sector & Industry
Sector P/E (Energy)	15.8
Industry P/E (Petroleum & Natural Gas)	17.0

Company
Sector	Energy
Industry	Petroleum & Natural Gas
CEO	Carol-Lee Howle
Employees	100,500
Country	GB
IPO Date	1977-01-03

BP p.l.c. earnings call transcripts

BP Q2 FY26 earnings call transcript (reported 2026-08-04) · analysis
BP Q2 FY25 earnings call transcript (reported 2025-08-05) · analysis

All BP earnings calls

Related Companies (Petroleum & Natural Gas; 8 comparable companies)

Data as of 2026-09-18.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.