The BP (LSE: BP) share price is once again back below 500p, trading around 458p, as I write. That’s a sharp pullback from March, when it briefly traded above 600p.
But with a price-to-earnings (P/E) ratio above 30, the stock doesn’t look dirt cheap on simple metrics. So I’m asking myself, is this just about oil, or are deeper company issues weighing on sentiment?
Boardroom upheaval
Internally, BP has had a somewhat troublesome time lately. In May, the board abruptly removed chairman Albert Manifold, citing “serious concerns” related to governance standards, oversight and conduct. He was only in the role for eight months.
Media reports covering the story mentioned complaints about an aggressive, “overbearing” management style – not the kind of headline a FTSE 100 oil major wants.
And that’s not all. The development follows years of rapid CEO turnover. Bernard Looney was pushed out in 2023 over misconduct disclosures and his successor, Murray Auchincloss, left in 2025 amid questions about BP’s performance and strategic direction.
Understandly, this has left investors trying to work out who is really steering the ship.
The new CEO, Meg O’Neill, who took over in April, has been trying to reset the narrative. In a memo to staff she described BP as operating in a world of “considerable complexity” and talked about providing energy “safely, dependably, and efficiently” while simplifying and strengthening the organisation.
She’s also reportedly pivoting back to core oil and gas after BP’s more ambitious renewables push disappointed some shareholders.
So amid all this governance chaos, the question is: can the new leadership rebuild trust and, if so, does the current low price offer a value opportunity?
How the numbers look
Despite a tumultuous period, BP’s latest results weren’t all bad. Profit dropped slightly to $7.5bn but cash flow remained strong at $24.5bn. Debt of $22.2bn is still high, but management targets a much lower range of $14bn – $18bn by 2027. It hopes to finance that debt through asset sales and suspended share buybacks.
Naturally, dividend income remains the key attraction. BP paid a total dividend of $0.25 per share in 2025, equivalent to a yield of about 5.7%.
Here’s a simple snapshot:
| Metric | Latest figure | Comment |
|---|---|---|
| Share price | 458p | Near five‑month low |
| Market-cap | £72.17bn | Large, global major |
| 2025 underlying profit | $7.5bn | Down versus prior year |
| 2025 operating cash flow | $24.5bn | Strong cash generation |
| Net debt | $22.2bn | Deleveraging in progress |
| 2025 total dividend | $0.25 per share | Yield around 5.7% |
In short, strong cash flow continues to support dividends, but you can see why the market isn’t exactly scrambling to buy the shares right now.
My verdict?
On the macro side, the recent decision by the US to waive sanctions on Iranian oil exports for 60 days has nudged oil prices lower. More importantly, it has raised questions about future supply.
Iran holds the third‑largest proven oil reserves globally, estimated at around 209bn barrels. A sustained return of its barrels could pressure prices and major producers like BP.
If the price of Brent Crude drifts back towards $50 a barrel, history suggests the shares could drop below 300p. On the other hand, the Iran situation is volatile, and sanctions could snap back if negotiations collapse again.
Personally, I’m comfortable holding my existing BP stake for the time being. But given the governance noise and oil‑price risk, I’m cautious about adding more at today’s price until the outlook feels clearer.
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Mark Hartley owns shares in BP.
This story originally appeared on Motley Fool
