AUS
NZ
UK
CA
USA
IND
Highlights
- In FY23, BP achieved USD 15,239 million profit, a significant turnaround from a loss of USD 2,487 million in FY22
- In Q4FY23, BP reported a net margin of 4.9% and ROE of 3.2%, outperforming industry average
- The company expects slight growth in upstream production with USD 16 billion capex planned for FY24
BP PLC (LSE: BP.) is a multinational oil and gas company listed on the FTSE 100. Its global energy operations span across North and South America, Europe, Asia, Australasia, and Africa. The company has a market capitalization of GBP 78,750.02mn.
In FY23, the company achieved a profit of USD 15,239 million, a significant turnaround from the loss of USD 2,487 million reported in FY22. This improvement can be attributed to increased production levels and higher average realized sales prices throughout FY23 compared to the previous fiscal year.
Further, in Q4FY23, the company demonstrated decent financial performance with a higher net margin of 4.9% and a return on equity (ROE) of 3.2%. These figures surpass the industry median of 1.3% for net margin and 0.8% for ROE.
In a move to reward shareholders, the management declared an interim dividend of USD 0.072 per share for Q1 FY24, which was disbursed on June 28, 2024. This translates to an annualized dividend yield of approximately 4.81% based on the closing stock price as of July 9, 2024.
Recent business update
According to BP's Q2FY24 trading updates, stronger fuel margins and enhanced convenience performance, alongside seasonally higher volumes, have boosted various customer segments. However, challenges are evident in the products segment, primarily stemming from markedly reduced realized refining margins. This is anticipated to adversely impact results by USD 0.5 to USD 0.7 billion. The decline is attributed to weaker middle distillate margins, narrower North American heavy crude oil differentials, and increased turnaround activities. These factors are partially mitigated by the absence of the first quarter's Whiting refinery outage.
Company outlook
In FY24, the company forecasts a slight increase in underlying upstream production compared to FY23, driven by anticipated improvements in oil production to meet growing demand. The management has earmarked approximately USD 16 billion for capital expenditure in FY24, with a significant portion allocated to the first half of the fiscal year.
Additionally, the company expects payments related to the Gulf of Mexico oil spill to total approximately USD 1.2 billion pre-tax for the year, with USD 1.1 billion pre-tax anticipated to be paid out during the second quarter.
Top 10 shareholders
The top 10 shareholders of BP together hold approximately 17.48% of the total shares. The Vanguard Group, Inc. holds the largest stake at around 4.69%, followed by Norges Bank Investment Management (NBIM) with approximately 3.16%, as illustrated in the chart provided.
Stock performance
BP's share price has experienced a decline of approximately 12.12% in the past three months, contrasting with a modest gain of around 0.12% over the last six months. Currently, the stock is trading below its 52-week high of GBX 562.30 and above its 52-week low of GBX 441.05, reflecting a position below the average of its annual trading range.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 09 July 2024. The reference data in this report has been partly sourced from EODHD/Others.
