BP (NYSE:BP) Posts Quarterly Earnings Results, Beats Estimates By $0.24 EPS

BP (NYSE:BP - Get Free Report) released its earnings results on Tuesday. The oil and gas exploration company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $1.00 by $0.24, Zacks reports. BP had a net margin of 1.62% and a return on equity of 12.06%. The firm had revenue of $52.26 billion for the quarter, compared to analyst estimates of $48.50 billion. During the same period in the prior year, the firm earned $0.53 earnings per share. The business's quarterly revenue was up 11.4% compared to the same quarter last year.

Here are the key takeaways from BP's conference call:

• BP reported a strong quarter with $3.2 billion of underlying net income and $8.9 billion of operating cash flow (before a $6 billion working‑capital build); production was 2.3 mboe/d and refinery throughput exceeded 1.5 mbpd, the highest quarterly level in four years.
• The company is simplifying its structure by returning to traditional upstream/downstream reporting to boost accountability and speed, announced the agreed sale of the Gelsenkirchen refinery, and has raised its structural cost‑reduction ambition to end‑2027 (70% delivered of the initial $400–$500m target.
• Management is prioritizing deleveraging and capital discipline—buybacks remain paused, CapEx guidance tightened to ~$13–13.5bn this year, and BP plans to cut the corporate hybrid stack by over $4 billion by end‑2027 (subject to market conditions).
• Exploration momentum: management cited 14 discoveries since early 2025, including the large Boomerang discovery (~8 billion barrels in place) and several short‑cycle finds that can be tied back quickly; BP reiterates a target of 100% reserve replacement by 2027.
• Net debt increased this quarter largely because of a $6 billion working‑capital build, temporarily raising leverage and potentially constraining near‑term financial flexibility until cash converts.

BP Stock Down 2.6%

BP stock traded down $1.23 during mid-day trading on Friday, hitting $46.15. The company had a trading volume of 1,037,050 shares, compared to its average volume of 13,131,786. The company has a quick ratio of 0.98, a current ratio of 1.26 and a debt-to-equity ratio of 0.74. The business has a fifty day moving average of $43.95 and a 200 day moving average of $38.60. The stock has a market cap of $120.85 billion, a price-to-earnings ratio of 38.55, a PEG ratio of 0.57 and a beta of 0.21. BP has a 1 year low of $27.51 and a 1 year high of $48.27.

BP Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, May 15th will be issued a $0.4992 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend is Friday, May 15th. BP's dividend payout ratio is 165.00%.

Analyst Ratings Changes

Several brokerages recently issued reports on BP. BNP Paribas Exane set a $57.00 price objective on BP and gave the stock an "outperform" rating in a report on Friday, April 17th. Piper Sandler raised their target price on BP from $44.00 to $47.00 and gave the stock a "neutral" rating in a research report on Thursday, March 12th. Scotiabank increased their price target on shares of BP from $41.00 to $58.00 and gave the company a "sector outperform" rating in a research note on Wednesday, April 22nd. HSBC raised BP from a "reduce" rating to a "hold" rating and lifted their price objective for the stock from $35.10 to $45.30 in a research note on Friday, March 20th. Finally, Jefferies Financial Group reissued a "hold" rating on shares of BP in a research note on Thursday, January 8th. Three analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $44.39.

Institutional Trading of BP

A number of large investors have recently made changes to their positions in the company. Ameriflex Group Inc. increased its position in shares of BP by 39.1% during the fourth quarter. Ameriflex Group Inc. now owns 1,808 shares of the oil and gas exploration company's stock worth $63,000 after acquiring an additional 508 shares during the last quarter. Sagefield Capital LP boosted its stake in BP by 125.2% during the 4th quarter. Sagefield Capital LP now owns 493,556 shares of the oil and gas exploration company's stock valued at $17,141,000 after acquiring an additional 274,381 shares during the last quarter. Advisory Services Network LLC grew its stake in BP by 5.8% in the fourth quarter. Advisory Services Network LLC now owns 18,304 shares of the oil and gas exploration company's stock worth $636,000 after purchasing an additional 999 shares in the last quarter. New York State Common Retirement Fund bought a new position in BP during the fourth quarter worth $17,768,000. Finally, Brown Brothers Harriman & Co. lifted its position in shares of BP by 14.1% in the 4th quarter. Brown Brothers Harriman & Co. now owns 6,549 shares of the oil and gas exploration company's stock worth $227,000 after buying an additional 811 shares during the last quarter. 11.01% of the stock is owned by institutional investors and hedge funds.

Key BP News

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP reported stronger-than-expected quarterly results and the consensus has been revised upward, signalling better near-term profitability and investor sentiment. Results: BP p.l.c. Exceeded Expectations
• Positive Sentiment: Erste Group raised its FY2026 and FY2027 EPS forecasts materially, which supports higher forward earnings expectations for BP. Upward estimate revisions can lift the stock multiple and analyst sentiment. Erste Group EPS Revisions
• Positive Sentiment: BP signed a memorandum of understanding with Venezuela to explore offshore gas in the Loran/Cocuina-Manakin area, adding potential long-term production upside and resource optionality. BP, Venezuela sign deal
• Positive Sentiment: Brent crude spiked above $125–$126 on geopolitical fears (U.S.–Iran escalation), supporting higher revenue and trading gains for integrated oil majors like BP. Elevated oil improves near-term cash flow and margins. Brent surge on Iran fears
• Neutral Sentiment: Macro commentary argues oil is replacing interest rates as the dominant economic driver — a thematic tailwind for energy names but also a signal of higher market volatility and policy uncertainty. Oil replacing interest rates
• Neutral Sentiment: Sector previews (e.g., ExxonMobil earnings) and analyst pieces on valuation/peer performance provide context that could influence relative flows into BP, but are not company-specific catalysts. Exxon Q1 preview / sector context
• Negative Sentiment: Operational/regulatory risk: flaring was reported at one BP refinery and is under state monitoring — could lead to fines, reputational impact or short-term outages. Refinery flaring incident
• Negative Sentiment: Despite earnings strength, BP paused buybacks while debt rose ~14%, prompting management to prioritize balance-sheet repair; this may limit near-term shareholder returns and weigh on sentiment for income-focused holders. Profit doubles; buybacks paused as debt climbs

BP Company Profile

BP plc is a British multinational integrated energy company headquartered in London. Originating in the early 20th century as the Anglo-Persian Oil Company, BP has grown into one of the world's largest oil and gas companies, operating across exploration and production, refining and marketing, trading, and a range of low-carbon businesses.

The company's core activities include upstream exploration and production of crude oil and natural gas, midstream and trading operations, and downstream refining, marketing and supply of fuels, lubricants and petrochemicals.