BP Stock (BP:NYE), the British oil and gas company, is set to announce its fourth-quarter financial results on February 7. Despite positive market conditions, including strong demand, limited supply, and higher average prices compared to the previous year, concerns remain as the company releases its earnings report.
Analysts predict BP to beat earnings again, with a projected $1.66 per share compared to the $1.23 reported in the same quarter last year. The company is expected to benefit from low inventory levels, supply cuts by OPEC+ nations, and uncertainty surrounding Russian exports. However, earnings are expected to decline from the previous quarter due to lower realized prices for crude and gas.
When it comes to the BP stock, it has underperformed compared to its American counterparts. Occidental Petroleum, Exxon Mobil, and Chevron have seen gains of 50%, 37%, and 25% respectively in the past year, while BP’s stock has only appreciated by 7%. The company’s increased investments in energy transition opportunities have slowed its growth, and the EU windfall profit tax remains a challenge.
Based on analyst forecasts, the average target price for BP stock is $40.00 in the next 12 months. BP stock has a “Buy” rating, but Stock Target Advisor‘s analysis shows a “Slightly Bearish” outlook, with 6 positive signals and 9 negative signals. BP’s stock price was $34.84 at the last closing and has changed by -3.68% in the past week, +1.10% over the past month, and +5.96% over the past year.
BP p.l.c. engages in the energy business worldwide. It operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments.
It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind power, and solar power generating facilities; and provides de-carbonization solutions and services, such as hydrogen and carbon capture and storage.
The company is also involved in the convenience and mobility business, which manages the sale of fuels to retail customers, convenience products, aviation fuels, and Castrol lubricants; refining and trading of oil products, as well as operation of electric vehicle charging facilities.
In addition, it produces and refines oil and gas; and invests in upstream, downstream, and alternative energy companies, as well as in advanced mobility, bio and low carbon products, carbon management, digital transformation, and power and storage areas.
The company was founded in 1908 and is headquartered in London, United Kingdom.