What Is the BP Share Price in the UK?

What Is BP?

As one of the world’s largest companies by both revenue and profits, BP operates in all areas of the gas and oil industry and has made some huge profits lately.

But is investing in BP a good investment for you?

Founded in 1909 as the Anglo-Persian Oil Company and becoming British Petroleum in 1954, BP is a British company with headquarters in London. It is one of the largest gas and oil supermajors in the world.

Originally state-owned, between 1979 and 1987, British Petroleum became privatised in stages and is now traded on the London Stock Exchange under the shortened name BP, which came into use in 2001.

Purporting to be a forward-thinking company, BP has stated that its purpose is 'reimagining energy for people and our planet', which they aim to achieve by focusing on clean and renewable energy alongside the fossil fuels they currently use.

As a company, BP has gone through some epic lows and incredible highs, especially when it comes to posted profits, and the soaring price of crude oil and gas for the last couple of years has helped.

BP shares are up 30% in the last 12 months, and with shareholder returns raised 10%, supporting this supermajor in your portfolio might be easy money.

Before you get involved in buying BP shares, it is a good idea to look at the company’s share price history for clues as to how it might perform in the future.

Share History For BP p.l.c.

Even if a company is showing increasing share prices, it can still fluctuate, reflecting the public opinion of the company according to all sorts of data and research.

BP recorded a $27.7 billion profit in 2022, more than double its profit in 2021. This correlates to an all-time high share price of £40.50 on the 16th of February, 2023. This isn’t representative of the whole picture, though, as the average BP stock price over the last 12 months has been about £34.

These highs might point to a good year to be involved in BP stock – according to the London Stock Exchange, the current price of BP stock is £47.54 (as of May 30th, 2023), demonstrating even more growth.

However, even in the last year, the stock price has dropped to £25.36. This demonstrates that shares in BP should be treated as a long-term investment as a part of your portfolio because of the quite drastic shifts in pricing.

For the future, most analysts agree that investing in BP is a good move; forecasts suggest that over the next 12 months, prices could achieve up to £100, but even the lowest forecasts suggest £55.

BP Stock Price for Today:

Why Is It Important to Track the BP Share Price in the UK?

Tracking the BP share price in the UK is important for several reasons, particularly for investors and stakeholders who have an interest in the company's financial performance and the broader energy sector.

Here are some key reasons why it's important to monitor BP's share price:

Investment Decisions

For existing shareholders and potential investors, monitoring BP's share price provides crucial information for making informed investment decisions.

Fluctuations in the share price can impact the overall value of an investment portfolio and may influence decisions to buy, sell or hold BP shares.

Financial Health Assessment

BP's share price reflects investors' perception of the company's financial health and future prospects.

A rising share price is generally seen as a positive indicator, signaling confidence in the company's ability to generate profits and deliver value to shareholders.

Market Sentiment

The share price of BP is influenced by market sentiment and investor confidence in the energy sector.

Positive news, such as strong earnings reports or successful projects, can drive the share price higher, while negative news or geopolitical uncertainties can lead to price declines.

Dividend Income

BP is known for its dividend payments, and the share price can impact the dividend yield for investors.

A higher share price may result in a lower dividend yield, while a lower share price could lead to a higher dividend yield.

Company Performance Evaluation

Tracking BP's share price over time allows stakeholders to assess the company's performance relative to its peers and the broader market.

It provides insights into how the company is faring in response to industry trends, economic conditions, and management decisions.

Industry and Economic Indicators

BP is a major player in the energy sector, and its share price can be influenced by industry-specific factors, such as oil prices and global energy demand.

As such, monitoring BP's share price can offer insights into broader energy market trends and economic indicators.

Risk Management

For investors with exposure to BP shares, tracking the share price is essential for risk management.

Understanding potential price fluctuations and market trends can help investors adjust their investment strategies and manage their risk exposure effectively.

Regulatory and Environmental Impact

BP's share price can be impacted by regulatory changes and environmental concerns related to the energy sector.

Monitoring these developments can help investors stay informed about potential risks and opportunities.

General Information on BP that Could Affect Share Price

Several parts of the BP story – and the state of the industry and the wider world – can impact the share price.

Below are a few considerations that could change prices and some events that have happened in the past that could still change the future.

Net Zero

Like many major companies in the world, BP has pledged to be net zero by 2050, and they are plunging a lot of funding into research and development in renewable energy. They have already announced plans for a 25% reduction in oil and gas production by 2025.

This overhaul into renewable energy helps the company profit whether oil and gas prices are high or not.

Deepwater Horizon

This might seem a bit like ancient history, but the Deepwater Horizon disaster has left a lingering impression on people.

This offshore drilling rig was owned by Transocean and operated by BP. In April 2010, an explosion on the rig killed 11 people and created a fireball that could be seen from 40 miles away.

Two days later, when it sank, it caused the largest marine oil spill in history and cost BP dearly – both in PR and public opinion, and in financial penalties.

That was only one oil spill disaster, but when dealing with drilling and refining, it is something that shareholders will be concerned about happening again.

Rosneft

As a direct response to Russia invading Ukraine, BP pulled out of its shareholding in the Russian company Rosneft. Both BP-nominated directors left the board, and they took their 19.75% shares with them.

This hard stance against Russia meant that they lost half of their oil and gas reserves and about a third of their production, costing up to $25 billion. BP was the single biggest foreign investor in Russia before this act.

Reducing Debt

The high profits made by BP in 2022 were accompanied by considerable debt paydown, reducing the overall company debt from $30 billion in 2021 to $21.4 billion by the end of 2022.

This bodes well for the shareholders, who will feel encouraged that profits are being used correctly to reduce the company’s overall debt.

Price Per Barrel

Oil prices are the basis for any prediction. While they remain encouragingly high now, global problems can make them fall drastically.

For example, at the height of the pandemic, there was a real issue with the overproduction of oil and gas – no construction happening and limited transportation meant that nobody was buying, so the prices fell.

As it stands, with limited infrastructure for the storage of renewables, the sanctions on Russia unlikely to end any time soon, and the production volume remaining constant, the price per barrel should be steady and increase, as the expert analysts predict.

What Is the BP Share Price Today?

As highlighted above, there are numerous factors that can affect the latest BP share price; therefore, it is recommended that you research and monitor what BP shares are doing semi-regularly.

If you want to get involved and create a portfolio that includes BP shares, it is relatively simple. You just need to find the right broker and trading platform that allows access to the stock exchange.

Follow the simple steps below to get set up.

Is Buying BP Shares Worthwhile?

With the continuing high price per barrel for oil, the projection that the company’s earnings before deductions will likely reach $46 to $49 billion by 2025 and $51 to $56 billion by 2030 doesn’t seem as unlikely.

Some factors could prove risky to an investment in BP, though.

If the current Russian crisis ends and tensions soften, oil prices could be lower. Some critics are saying that the oil prices will not maintain this high price for such a prolonged period anyway, and if that happens, the projected figures will not be met.

However, analysts in places like Goldman Sachs have forecasted that oil prices will tip $100 per barrel by the end of the year, and this is a sentiment that both Barclays and RBC share.

With all the details in mind about current performance and future forecasts, investors who choose BP shares will be able to take advantage of the increase in the value of their portfolio. They will be able to enjoy some passive income from the quarterly dividend payments, which increased by 10% in 2022.

As with all investments, shares in BP come with inherent risk. You should never invest more than you can afford to lose, however much of a ‘sure thing’ the investment sounds.

Shares in BP could be considered a lucrative investment; however, with the nature of their business, BP is at the mercy of several different governments in a geopolitical environment that can only be considered volatile.

Frequently Asked Questions

Final Thoughts

As the biggest company in the world in terms of revenue and profit, BP seems to be growing stronger thanks to the sustained increase in the price per barrel of oil and because they are involved in every aspect of oil and gas as well as in renewable energy, they are likely to be a major player for many years yet.

This means that if you are looking to buy shares in BP, now could be the best time.

Forecasters are predicting that share prices could more than double by the end of the year, attracting much more attention from investors and analysts alike.

However, like all investments, shares in BP come with risks. The share price could drop for several reasons, and you could lose your investment.

Make a considered decision and never invest more than you can afford to lose.

WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.