View analysts price targets for BP or view top-rated stocks among Wall Street analysts. The once British Petroleum is now “Beyond Petroleum” and focused on a major shift in its business. The company is working hard to move away from non-renewable carbon-based energy and into biofuels, solar, and wind. The company hopes to be net-zero in regard to carbon emissions and production by 2050 or earlier and is well on the way to doing so. Among the many avenues of advance are the build-out of solar and wind farms as well as the expansion of a major EV charging network.
- At the same time, the company has suffered because of the crisis in Ukraine that saw it report a $20.4 billion loss in the first quarter.
- 11 Wall Street research analysts have issued 1-year price objectives for BP’s stock.
- Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day.
Even worse, the demand for aviation fuel has collapsed due to the reluctance of people to travel by plane amid the coronavirus crisis. Consequently, the global demand for oil products is expected by the Energy Information Administration [EIA] to slump by 8.3 million barrels per day on average this year, from 101.4 to 93.1 million barrels per day. This will mark the steepest decline in the global oil consumption in at least three decades.
Income Tax Calculator: Estimate Your Taxes
The ratios, though, are roughly in line with UK-listed competitor Shell. BP’s stock closed in London on Thursday at 232.4 pence, the lowest level since October 1995. While falling crude prices and fears of the second wave of the coronavirus didn’t help, the slide suggests shareholders weren’t convinced by Looney’s pitch. As the second quarter was marked by unprecedented lockdowns worldwide, BP will certainly improve its results in the second half of the year.
- Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services.
- But its leadership said returns from the company’s renewable energy investments have been disappointing.
- One of the good things is the shares could potentially offer value.
The company’s shares are listed on the London , Amsterdam and New York stock exchanges. If you are interested in BP share trading and are wondering, “Should I invest in BP stock? ” follow the BP share price live and spot the best trading opportunities atCapital.com. The oil industry started 2020 on solid ground with the Brent Crude oil price standing above $60 per barrel and BP stock trading at $39.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. Looney took over as CEO in February, but the so-called “BP Week” this month was his big moment, designed to put flesh action airbus on the bones of a bold plan to become a “net-zero” energy company by 2050. It was also an opportunity to persuade shareholders to stick with BP after the company slashed its dividend by half in August. Just a week after revealing its plan to turn itself into a clean-energy giant, BP watched its share price drop to a 25-year low.
Phillips 66 Buys Fuels Business From California Petroleum Marketer — OPIS
If you have symptoms of extreme low blood pressure (hypotension) or shock, seek emergency medical help. Low blood pressure is generally considered a blood pressure reading lower than 90 millimeters of mercury (mm Hg) for the top number (systolic) or 60 mm Hg for the bottom number (diastolic). These are just a handful of the figures considered in BP and Shell’s great Value grade.
Regardless of the exact path of performance across BP’s integrated set of energy businesses, the stock’s extremely low valuation compensates for these risks. The Brent crude oil benchmark has jumped to $120 a barrel, returning to Is microsoft a good stock to buy levels not seen since 2008. Meanwhile, natural gas prices in the US are up by nearly 160% in the past 12 months (while in the UK and European markets prices have risen by 150% and 227% respectively – gas is not a global market).
Some analysts are now speculating that oil prices could hit $180 or more in the months ahead. This is the part of the business plan of BP that has caused panic in the market. Not only does the oil major have no expertise in renewable energy projects, but it will be nearly impossible to achieve the same margins it enjoyed in the oil industry for decades. It is also worth noting that BP is infamous for having repeatedly dismissed renewable energy projects in the past, claiming that oil was much more profitable.
He has written for the Motley Fool, Gurufocus and ValueWalk among others. Rupert has also founded and managed several businesses, including New York-based hedge fund newsletter, Hidden Value Stocks, written over 20 ebooks and appeared as an expert commentator on the BBC forex trading fundamentals World Service. He has been an active investor since leaving school and has always been fascinated by the world of business and investing. Sign up for free and stay up to date on research advancements, health tips, current health topics, and expertise on managing health.
BP’s US boss to leave company weeks after CEO Looney
Oil has been on a tear lately, and BP’s investors have done quite well. The British Petroleum stock market price is made up of original BP stocks and shares acquired from mergers with Amoco in 1998 and ARCO in 2000. Amoco’s acquisition caused a significant 40 per cent surge in the BP stock price in April 1999. However, by early 2000, BP shares had lost almost 25 per cent after the Federal Trade Commission opposed a new acquisition of ARCO. I believe BP’s low valuation and sensible energy transition strategy and improving financial position make the risk-reward ratio very favorable for investors. Although I have some reservations about the CFO Murray Auchincloss, I am a big fan of CEO Bernard Looney.
Businesses
The company is scheduled to release its next quarterly earnings announcement on Tuesday, November 7th 2023. Fuel demand in Europe has been “a little bit” soft while consumption in China has been strong following the lifting of pandemic restrictions, BP Chief Financial Officer Murray Auchincloss told analysts on a call. Its dividend remained unchanged at 6.61 cents per share after a 10% increase in February. The London-based company repurchased a total of $11.7 billion worth of shares in 2022. The smaller target is a result of a significant drop in operating cash flow to $7.6 billion during the quarter from $13.5 billion in the final quarter of 2022. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
BP Stock – Frequently Asked Questions
To that end, the company is building 7 hydrogen production and storage hubs in key locations around the world. The company aims to produce blue and green hydrogen for the global transportation industry with production beginning in 2027. Blue hydrogen is hydrogen captured from the company’s natural gas deposits using a process that captures the waste carbon. JPMorgan Chase financed $56.9 billion in fossil fuel projects vs. $42.3 billion in low-carbon energy efforts, according to Bloomberg’s data. Citigroup reported $43.9 billion in fossil fuel investments against $33.4 billion in clean energy. Meanwhile, Bank of America financed more clean energy projects ($35.8 billion vs. $32 billion).
The pandemic is likely to subside next year thanks to a vaccine and thus the global demand for oil products is likely to recover. As a result, those who purchase BP near its 25-year lows are likely to be highly rewarded. On the other hand, investors should be aware of the aforementioned risk factors that will weigh on the stock in the unlikely event of a prolonged pandemic. BP p.l.c. currently operates through 4 segments including Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. The company produces and trades in natural gas and oil liquids, offers biofuels, and operates wind and solar power generating facilities.
This company’s current P/B looks solid when compared to its industry’s average P/B of 1.32. Over the past year, BP’s P/B has been as high as 1.42 and as low as 0.96, with a median of 1.13. We think that the revenue growth of 65% could have some investors interested.
