Oil and Gas, Mint Finance

Suhas Reddy

Oil and Gas

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

Equity Bottom-Up

<ul>
<li>BP’s revenue declined 11.3% YoY, missing estimates by 4.3%, while EPS fell 27.8% YoY, beating estimates by 3.8%. Underlying net profit dropped 31.2% YoY to USD 2.3 billion.</li>
<li>BP’s Q3 performance was impacted by weak oil prices, lower refining margins, and soft trading results, leading to its lowest underlying net profit since Q3 2020.</li>
<li>Total upstream production rose 3% YoY, with liquids production up 5%. BP also achieved 80% YoY growth in its EV charging business, selling 1 terawatt-hour of electricity globally.</li>
</ul>


BP’s revenue declined 11.3% YoY, missing estimates by 4.3%, while EPS fell 27.8% YoY, beating estimates by 3.8%. Underlying net profit dropped 31.2% YoY to USD 2.3 billion.
BP’s Q3 performance was impacted by weak oil prices, lower refining margins, and soft trading results, leading to its lowest underlying net profit since Q3 2020.
Total upstream production rose 3% YoY, with liquids production up 5%. BP also achieved 80% YoY growth in its EV charging business, selling 1 terawatt-hour of electricity globally.


[Earnings Review] BP Posts Worst Earnings Since Q3 2020 as Weak Oil Prices Hit Margins

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>BP's Third Quarter 2024 results reflect a company adeptly managing its transition towards a more sustainable future while maintaining a focus on financial performance.</li><li>Amidst a volatile industry landscape, BP reported an underlying profit of $2.3 billion for the quarter, which directly supports their announced distribution strategy including a $1.75 billion share buyback and a maintained dividend of $0.08 per ordinary share.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

BP's Third Quarter 2024 results reflect a company adeptly managing its transition towards a more sustainable future while maintaining a focus on financial performance.Amidst a volatile industry landscape, BP reported an underlying profit of $2.3 billion for the quarter, which directly supports their announced distribution strategy including a $1.75 billion share buyback and a maintained dividend of $0.08 per ordinary share.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

BP p.l.c.: How Are They Strengthening Their Market Position Through Strategic Acquisitions & Partnerships? - Major Drivers

<ul>
<li>BP will report Q3 earnings on 29/Oct, with analysts expecting a 5% YoY revenue drop and a 19.1% EPS decline, impacted by weaker oil prices and refining margins.</li>
<li>BP's OI PCR at 0.79, reflects neutral sentiment, while a high IV percentile of 93% suggests elevated volatility. OI shows calls concentrated at strikes 35 and 36, puts at 27.</li>
<li>BP’s short interest has increased for five consecutive biweekly periods, reaching 10.5 million shares as of 30/Sep—a 0.7% rise from 13/Sep and up 79% since 15/Jul.</li>
</ul>


BP will report Q3 earnings on 29/Oct, with analysts expecting a 5% YoY revenue drop and a 19.1% EPS decline, impacted by weaker oil prices and refining margins.
BP's OI PCR at 0.79, reflects neutral sentiment, while a high IV percentile of 93% suggests elevated volatility. OI shows calls concentrated at strikes 35 and 36, puts at 27.
BP’s short interest has increased for five consecutive biweekly periods, reaching 10.5 million shares as of 30/Sep—a 0.7% rise from 13/Sep and up 79% since 15/Jul.


[Pre Earnings Options Flash] BP’s OI PCR in Neutral Territory but Short Interest Continues to Surge

<ul>
<li>BP’s revenue is expected to rise 7% QoQ but fall 5% YoY while EPS is anticipated to drop 7% QoQ and 19% YoY.</li>
<li>Management projected lower upstream production for Q3 compared to Q2, including in high-margin regions. However, retail fuel sales are expected to increase on stronger seasonal demand.</li>
<li>In 2023, BP allocated over 30% of its total expenditure to charging stations, biofuels, hydrogen fuels, and fuelling stations, a significant rise from just 3% in 2019.</li>
</ul>


BP’s revenue is expected to rise 7% QoQ but fall 5% YoY while EPS is anticipated to drop 7% QoQ and 19% YoY.
Management projected lower upstream production for Q3 compared to Q2, including in high-margin regions. However, retail fuel sales are expected to increase on stronger seasonal demand.
In 2023, BP allocated over 30% of its total expenditure to charging stations, biofuels, hydrogen fuels, and fuelling stations, a significant rise from just 3% in 2019.


[Earnings Preview] BP Faces Prolonged Margin Pressure in Q3 2024 Amid Lower Oil Prices

<ul><li>BP's recently disclosed quarterly financial results reflect a robust operational performance characterized by high plant reliability and refining availability.</li><li>During the quarter, upstream plant reliability was reported at 96%, and refining availability matched this figure, fostering a conducive environment for strong production and operational efficiency.</li><li>This operational reliability underpinned the company’s financial performance, with BP generating substantial operating cash flow of $8.1 billion.</li></ul>

BP's recently disclosed quarterly financial results reflect a robust operational performance characterized by high plant reliability and refining availability.During the quarter, upstream plant reliability was reported at 96%, and refining availability matched this figure, fostering a conducive environment for strong production and operational efficiency.This operational reliability underpinned the company’s financial performance, with BP generating substantial operating cash flow of $8.1 billion.

BP p.l.c.: Enhanced Focus on Natural Gas and Renewable Energy Paying Off? - Major Drivers

United Kingdom

BP plc is an oil and petrochemicals company.  The Company explores for and produces oil and natural gas, refines, markets, and supplies petroleum products, generates solar energy, and manufactures and markets chemicals.  BP's chemicals include terephthalic acid, acetic acid, acrylonitrile, ethylene and polyethylene.

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BP PLC (BP/ LN)

[Earnings Review] BP Posts Worst Earnings Since Q3 2020 as Weak Oil Prices Hit Margins

BP fell 5.4% on 29/Oct after reporting its lowest earnings since Q3 2020, with revenue and profit hit by weak crude prices and falling refining...

Mint Finance

BP p.l.c.: How Are They Strengthening Their Market Position Through Strategic Acquisitions & Partnerships? - Major Drivers

BP's Third Quarter 2024 results reflect a company adeptly managing its transition towards a more sustainable future while maintaining a focus on...

Baptista Research

[Pre Earnings Options Flash] BP’s OI PCR in Neutral Territory but Short Interest Continues to Surge

BP options sentiment is neutral, but IV percentile is high at 93%. Calls are concentrated at strikes 31.5 and 32, while puts are at 31. Short...

Mint Finance

[Earnings Preview] BP Faces Prolonged Margin Pressure in Q3 2024 Amid Lower Oil Prices

BP expects a slight QoQ decline in upstream production, including high-margin regions in Q3, but anticipates stronger retail sales from seasonal...

Mint Finance

BP p.l.c.: Enhanced Focus on Natural Gas and Renewable Energy Paying Off? - Major Drivers

BP's recently disclosed quarterly financial results reflect a robust operational performance characterized by high plant reliability and refining...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Earnings Review] BP Posts Worst Earnings Since Q3 2020 as Weak Oil Prices Hit Margins

BP fell 5.4% on 29/Oct after reporting its lowest earnings since Q3 2020, with revenue and profit hit by weak crude prices and falling refining...

Mint Finance

BP p.l.c.: How Are They Strengthening Their Market Position Through Strategic Acquisitions & Partnerships? - Major Drivers

BP's Third Quarter 2024 results reflect a company adeptly managing its transition towards a more sustainable future while maintaining a focus on...

Baptista Research

[Pre Earnings Options Flash] BP’s OI PCR in Neutral Territory but Short Interest Continues to Surge

​BP options sentiment is neutral, but IV percentile is high at 93%. Calls are concentrated at strikes 31.5 and 32, while puts are at 31. Short...

Mint Finance

[Earnings Preview] BP Faces Prolonged Margin Pressure in Q3 2024 Amid Lower Oil Prices

BP expects a slight QoQ decline in upstream production, including high-margin regions in Q3, but anticipates stronger retail sales from seasonal...

Mint Finance

BP p.l.c.: Enhanced Focus on Natural Gas and Renewable Energy Paying Off? - Major Drivers

BP's recently disclosed quarterly financial results reflect a robust operational performance characterized by high plant reliability and refining...

Baptista Research

BP options sentiment is neutral, but IV percentile is high at 93%. Calls are concentrated at strikes 31.5 and 32, while puts are at 31. Short...