BP (BP, $23.47) posts Q2 loss, announces cost reduction plans and dividend cut
BP posted a second-quarter loss and announced halving of its quarterly dividend. However, the energy company also announced plans on cost cutting and a drive to go green.
The London-based company’s second-quarter underlying replacement cost profit, which it uses as a proxy for its net earnings, came in at a record loss of -$6.7 billion for the second quarter. It raked a net profit of $800 million in the first quarter.
BP’s reported loss for the quarter was -$16.8 billion, which included a post-tax charge of $10.9 billion for non-operating items. That figure included $9.2 billion in impairment charges, mainly reflecting BP’s revised forecast for oil and gas prices over the next 30 years, and $1.7 billion of exploration write-offs.
Coronavirus pandemic, which severely hurt demand for energy in the second quarter, propelled BP to focus on a plan to reduce its oil and gas output by 40% and increase investments in renewable energy over the next decade.
The company lowered its forecast for Brent crude to $55 a barrel over the next 30 years, compared to its prior forecast of $70 a barrel.
BP also announced that it slashed its dividend to 5.25 cents a share from 10.5 cents a share for the first quarter. BP also announced plans to cut 10,000 global positions, which it expects will be a “significant” contribution to its plan of $2.5 billion reduction in annual cash costs by the end of 2021.
According to Tickeron, BP in Downtrend: Stochastic indicator remains in oversold zone for 4 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Current price $23.48 crossed the support line at $23.43 and is trading between $24.09 resistance and $23.43 support lines. Throughout the month of 07/01/20 - 08/03/20, the price experienced a -5% Downtrend. During the week of 07/27/20 - 08/03/20, the stock fell -5%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The lower Bollinger Band was broken -- a price increase is expected as the ticker heads toward the middle band, which indicates a buy or call consideration for traders. In 14 of 34 cases where BP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued Uptrend are 41%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 28, 2020. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 36 of 88 cases where BP's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 41%.
The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 25 of 45 cases where BP's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 56%.
The price moved below its 50-day Moving Average, which indicates a reversal from an Uptrend to a Downtrend. In 20 of 40 cases where BP's price crossed below its 50-day Moving Average, its price fell further within the subsequent month. The odds of a continued Downtrend are 50%.
The Aroon Indicator entered a Downtrend today. In 89 of 212 cases where BP Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 42%.
Fundamental Analysis (Ratings)
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 58%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.03.
The Tickeron Valuation Rating of 15 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.76) is normal, around the industry mean (1.04). P/E Ratio (18.36) is within average values for comparable stocks, (17.98). Projected Growth (PEG Ratio) (0.64) is also within normal values, averaging (1.97). Dividend Yield (6.51) settles around the average of (7.40) among similar stocks. P/S Ratio (0.46) is also within normal values, averaging (1.33).
The Tickeron SMR rating for this company is 30 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 36 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 80 (best 1 - 100 worst), indicating slightly worse than average price growth. BP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 98, placing this stock worse than average.
BP in upward trend: 10-day moving average broke above 50-day moving average on January 26, 2026
The 10-day moving average for BP crossed bullishly above the 50-day moving average on January 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 21, 2026. You may want to consider a long position or call options on BP as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BP just turned positive on January 13, 2026. Looking at past instances where BP's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
BP moved above its 50-day moving average on January 21, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BP advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 286 cases where BP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for BP moved out of overbought territory on February 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BP broke above its upper Bollinger Band on January 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 51, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.716) is normal, around the industry mean (1.391). BP's P/E Ratio (63.369) is considerably higher than the industry average of (19.280). Projected Growth (PEG Ratio) (0.153) is also within normal values, averaging (2.042). Dividend Yield (0.050) settles around the average of (0.064) among similar stocks. P/S Ratio (0.556) is also within normal values, averaging (1.063).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a producer of petroleum, natural gas and related products
Industry IntegratedOil
Advertisement