Image source: © Route66 | Megapixl.com

Highlights

  • In Q1 FY24, the company’s profit attributable to shareholders was USD 2,263mn compared to the loss of USD 371mn in Q4 FY23
  • BP declared an interim dividend for Q1 FY24 at USD 0.072 per share, scheduled for payment on June 28, 2024
  • In April 2024, BP secured a deal with Korea Gas Corporation to supply 9.8mn tonnes of LNG annually from 2026 for 11 years

BP PLC (LSE: BP) is an FTSE 100-listed global oil and gas company. Its energy business spans Australasia, Asia, Africa, Europe, and North and South America. It has a market capitalization of GBP 81,431.77 million.

In Q1 FY24, the group’s liquid production stood at 1,056 mb/d, as compared to 1,024 mb/d in Q4 FY23. Natural gas production rose marginally to 2,364 mmcf/d in the reported period versus 2,205 mmcf/d in Q4 FY23. The overall production surged to 1,463 mboe/d in Q1 FY24 versus 1,421 mboe/d in Q4 FY23.

Further, the company demonstrated improved financial performance in the quarter as evidenced by the profit attributable to shareholders of USD 2,263mn compared to the loss of USD 371mn in Q4 FY23.

BP declared an interim dividend for Q1 FY24 at USD 0.072 per share, scheduled to be paid on June 28, 2024. This amounts to an annualized dividend yield of approximately 4.70% based on the closing stock price on May 28, 2024. Additionally, the company announced a share buyback program totalling USD 1.75bn for Q1 FY24 and USD 3.5bn for H1 FY24.

Recent business update

In April 2024, BP signed an agreement with Korea Gas Corporation for LNG gas supply. As per the agreement, starting from 2026, BP will supply up to 9.8mn tonnes of LNG to Korea Gas for a period of 11 years.

Company outlook

In FY24, the company foresees a modest uptick in underlying upstream production compared to FY23, with oil production operations set to benefit from growing demand. Management expects a capital expenditure of around USD 16 billion for FY24, with the majority allocated to H1 FY24. Payments linked to the Gulf of Mexico oil spill for the year are estimated at approximately USD 1.2 billion pre-tax, with USD 1.1 billion pre-tax expected to be distributed in the second quarter.

Top 10 shareholders

The top 10 shareholders of BP collectively own around 24.27% of the total stake in the company. BlackRock Investment Management (UK) Ltd. holds the majority stake in the company, accounting for ~9.00% of the total shareholding. Following closely is The Vanguard Group, Inc. with ~4.65% shareholding, as shown in the chart below:

 

Stock performance

The stock price of BP has witnessed a decline of ~6.54% in the last one month and over the last six months, it has decreased by ~5.66%. The stock’s 52-week low and 52-week high stand at GBX 45.50 & GBX 71.00, respectively. Currently, it is trading below the average of its 52-week high-low.

 

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 28 May 2024. The reference data in this report has been partly sourced from EODHD/Others.