- BP’s adjusted earnings before interest and tax (EBIT) for Q4 stood at $4.03 billion, surpassing the estimate of $3.88 billion.
- Adjusted oil production and operations profit before interest and tax (PBIT) reached $2.92 billion, exceeding estimates of $2.53 billion.
- Adjusted gas and low carbon energy PBIT was $1.99 billion, above the forecasted $1.74 billion.
- Adjusted other businesses and corporate saw a PBIT loss of $527 million, larger than the expected loss of $472.2 million.
- Adjusted net income reported at $1.17 billion, slightly below the estimate of $1.3 billion.
- BP’s capital expenditure was $3.89 billion, higher than the $3.37 billion predicted in estimates.
- Organic capital expenditure was recorded at $4.23 billion.
- Operating cash flow reached $7.43 billion, significantly surpassing the estimate of $6.13 billion.
- Net debt was reduced to $23.00 billion, beating the estimate of $23.99 billion.
- Net debt including leases was $34.91 billion, better than the $35.98 billion estimated.
- Debt gearing stood at 22.7%, lower than the estimated 23.9%.
- Adjusted earnings per share (EPS) were 7.36 cents, which fell short of the estimated 8.43 cents.
- Dividend per share remained steady at 8.000 cents, matching the estimate.
- Investment analysts’ ratings include 8 buys, 13 holds, and 4 sells.
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BP PLC on Smartkarma
Analyst coverage of BP PLC on Smartkarma provides a mixed outlook. Suhas Reddy‘s report ‘Earnings Preview: BP’s Challenges amidst Weak Crude Prices’ paints a bearish picture, expecting a significant decline in Q4 revenue and EPS due to weaker refining margins and higher turnaround activity impacting profits.
In contrast, Suhas Reddy‘s analysis on ‘BP Posts Worst Earnings Since Q3 2020’ highlights a recent dip in earnings driven by weak oil prices and falling refining margins. However, a bullish sentiment is provided by the ‘Pre Earnings Options Flash’ report, indicating neutral options sentiment but with a surge in short interest.
A look at BP PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
BP PLC, a prominent oil and petrochemicals company, holds a respectable position in the market based on the Smartkarma Smart Scores. With a solid ranking in Dividend and Momentum, BP PLC showcases promising long-term potential. The company’s Dividend score of 4 highlights its strong track record of distributing profits to shareholders, instilling confidence in investors seeking stable returns. Furthermore, the Momentum score of 4 indicates a positive market trend for BP PLC, suggesting an upward trajectory in the foreseeable future.
Although BP PLC‘s Value, Growth, and Resilience scores sit at a moderate level of 3, the company’s diverse portfolio spanning oil exploration, natural gas production, renewable energy generation, and chemical manufacturing positions it well for sustained growth and adaptability. Overall, BP PLC‘s strategic focus and robust financial performance reflect a company with the capacity to navigate market fluctuations and deliver value to its stakeholders over the long haul.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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