BP’s Q4 Profit Plunges, but Shareholder Payouts Stay Intact

• Price Target Set by Jefferies: A price target of $29 was set for BP (NYSE:BP), indicating a slight overvaluation at its current trading price.
• Downgrade to Hold: BP was downgraded from Buy to Hold by Jefferies, reflecting a cautious outlook on the stock.
• Share Buybacks and Capital Return Strategy: BP's strategy to return 30-40% of its operating cash flow to shareholders aims to provide a steady return on investment.

BP (NYSE:BP) is a major player in the global energy sector, known for its oil and gas production. The company is involved in various activities, including exploration, refining, and distribution of energy products. BP competes with other energy giants like ExxonMobil and Chevron. Recently, BP's stock has been in the spotlight due to analyst actions and market speculation.

On May 19, 2025, Giacomo Romeo from Jefferies set a price target of $29 for BP. At that time, BP's stock was trading at $29.76, indicating a price difference of approximately -2.55% from the target. This suggests that the stock was slightly overvalued according to Jefferies' analysis. Additionally, BP was downgraded to Hold from Buy by Jefferies, as highlighted by TheFly.

BP's shares saw a significant surge in May, driven by speculation about a potential takeover. Despite facing lower liquids realizations, BP reported decent earnings for the first quarter. The company maintained stable results in its oil production and continued to invest heavily in share buybacks, which can help support the stock price by reducing the number of shares available in the market.

BP has outlined a long-term capital framework, aiming to return 30-40% of its operating cash flow to shareholders. This strategy is designed to attract investors by providing a steady return on investment. BP's market capitalization is approximately $77.76 billion, with a trading volume of 6,912,263 shares, reflecting its significant presence in the energy market.

Currently, BP is trading at $29.76, with a decrease of 1.16% and a change of $0.35. Today's trading has seen a low of $29.51 and a high of $29.86. Over the past year, BP's stock has reached a high of $37.60 and a low of $25.22, indicating some volatility in its stock price.

BP (NYSE:BP) reported first-quarter results that missed analyst expectations and scaled back its share buyback program, leading to a more than 2% drop in its stock price intra-day today.

The British energy giant posted net income of $1.38 billion for the first quarter of 2025, falling 10% short of the $1.53 billion consensus estimate. Despite the earnings miss, operating performance was stable, with EBIT matching forecasts at $4.46 billion.

Cash flow from operations, excluding working capital changes, reached $6.2 billion—slightly above expectations—driven mainly by lower-than-anticipated cash taxes.

Looking ahead, BP expects upstream production to stay flat in the second quarter. However, the company warned of a sharp increase in downstream turnaround activity as it enters a heavier maintenance cycle, consistent with earlier guidance for a front-loaded year.

BP also adjusted its full-year plans, cutting capital expenditure guidance to $14.5 billion from $15 billion and projecting divestment proceeds between $3 billion and $4 billion, primarily weighted toward the second half of the year.

BP (NYSE:BP) reported first-quarter results that missed analyst expectations and scaled back its share buyback program, leading to a more than 2% drop in its stock price intra-day today.

The British energy giant posted net income of $1.38 billion for the first quarter of 2025, falling 10% short of the $1.53 billion consensus estimate. Despite the earnings miss, operating performance was stable, with EBIT matching forecasts at $4.46 billion.

Cash flow from operations, excluding working capital changes, reached $6.2 billion—slightly above expectations—driven mainly by lower-than-anticipated cash taxes.

Looking ahead, BP expects upstream production to stay flat in the second quarter. However, the company warned of a sharp increase in downstream turnaround activity as it enters a heavier maintenance cycle, consistent with earlier guidance for a front-loaded year.

BP also adjusted its full-year plans, cutting capital expenditure guidance to $14.5 billion from $15 billion and projecting divestment proceeds between $3 billion and $4 billion, primarily weighted toward the second half of the year.

BP (NYSE:BP) reported a sharp decline in fourth-quarter profit as weaker refining margins, lower energy prices, and rising costs weighed on earnings. Despite the downturn, the company reaffirmed its commitment to shareholder returns with a dividend payout and a fresh buyback program.

For the final quarter of 2024, BP posted an underlying replacement cost (RC) profit of $1.2 billion, a steep drop from the $3 billion reported in the same period a year ago. The company also recorded a reported net loss of $2.0 billion, a significant swing from the $0.2 billion profit in Q3 2024.

Multiple factors contributed to the weak performance, including lower refining margins, sluggish fuel sales, and scheduled maintenance activity at refineries. While BP’s gas and low-carbon energy division saw an improvement from the prior quarter with $2.0 billion in underlying RC profit, earnings remained below year-ago levels. Meanwhile, the oil production and operations segment reported $2.9 billion in profit, supported by lower exploration write-offs but hampered by weaker realized prices.

Notably, BP’s customers and products division posted a $0.3 billion loss, as lower fuel margins and seasonal demand softness dragged on performance.

Despite the earnings slump, BP maintained its 8-cent-per-share dividend and announced a $1.75 billion share buyback for Q1 2025, underscoring its focus on returning capital to investors even in a challenging environment.

BP (NYSE:BP), a leading player in the global oil and gas industry, recently reported its earnings for the fourth quarter of 2025. The company, known for its extensive operations in energy production and refining, faces competition from other major oil companies like Shell and ExxonMobil. BP's earnings per share (EPS) came in at $0.44, missing the estimated $0.56, while revenue slightly exceeded expectations at $45.75 billion against the forecasted $45.65 billion.

The company's underlying replacement cost profit, a key measure of net profit, fell sharply to $1.169 billion from $2.99 billion in the same period last year. This decline was slightly below the analyst forecast of $1.2 billion, as highlighted by Reuters. The drop in profit, the lowest in four years, is attributed to weak margins in BP's refining business. This has raised concerns among investors, especially with activist investor Elliott Investment Management reportedly building a stake in the company.

BP's financial health shows a mixed picture. The company's net debt increased by 10% year-on-year, reaching nearly $23 billion. Despite this, BP's capital expenditure for the quarter decreased to $3.7 billion from $4.7 billion the previous year. CEO Murray Auchincloss has announced plans to reset the company's strategy, focusing on cost-cutting and strategic overhauls to improve cash flow and returns.

BP's financial ratios provide further insight into its current standing. The price-to-earnings (P/E) ratio is approximately 34.54, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is about 0.46, suggesting investors pay 46 cents for every dollar of BP's sales. The enterprise value to sales ratio stands at around 0.63, reflecting the company's total valuation relative to its sales.

The company's debt-to-equity ratio is approximately 1.06, showing a balanced use of debt and equity to finance its assets. BP's current ratio is around 1.22, indicating its ability to cover short-term liabilities with short-term assets. Despite the challenges, BP's earnings yield of about 2.90% represents a return on investment for shareholders, highlighting the company's potential for future growth amidst strategic changes.

BP (NYSE:BP), a leading player in the global oil and gas industry, recently reported its earnings for the fourth quarter of 2025. The company, known for its extensive operations in energy production and refining, faces competition from other major oil companies like Shell and ExxonMobil. BP's earnings per share (EPS) came in at $0.44, missing the estimated $0.56, while revenue slightly exceeded expectations at $45.75 billion against the forecasted $45.65 billion.

The company's underlying replacement cost profit, a key measure of net profit, fell sharply to $1.169 billion from $2.99 billion in the same period last year. This decline was slightly below the analyst forecast of $1.2 billion, as highlighted by Reuters. The drop in profit, the lowest in four years, is attributed to weak margins in BP's refining business. This has raised concerns among investors, especially with activist investor Elliott Investment Management reportedly building a stake in the company.

BP's financial health shows a mixed picture. The company's net debt increased by 10% year-on-year, reaching nearly $23 billion. Despite this, BP's capital expenditure for the quarter decreased to $3.7 billion from $4.7 billion the previous year. CEO Murray Auchincloss has announced plans to reset the company's strategy, focusing on cost-cutting and strategic overhauls to improve cash flow and returns.

BP's financial ratios provide further insight into its current standing. The price-to-earnings (P/E) ratio is approximately 34.54, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is about 0.46, suggesting investors pay 46 cents for every dollar of BP's sales. The enterprise value to sales ratio stands at around 0.63, reflecting the company's total valuation relative to its sales.

The company's debt-to-equity ratio is approximately 1.06, showing a balanced use of debt and equity to finance its assets. BP's current ratio is around 1.22, indicating its ability to cover short-term liabilities with short-term assets. Despite the challenges, BP's earnings yield of about 2.90% represents a return on investment for shareholders, highlighting the company's potential for future growth amidst strategic changes.