BP’s Business Model Is Changing, And So Are The Key Metrics Investors Should Watch

BP’s Business Model Is Changing, And So Are The Key Metrics Investors Should Watch

British gas and oil multinational company BP (British Petroleum) logo is seen on October 7, 2020 in ... [+] Warsaw, Poland. (Photo by Aleksander Kalka/NurPhoto via Getty Images)



NurPhoto via Getty Images

In the past few months, BP (NYSE: BP) extended its long-term renewable energy goals by announcing strategic partnerships with multiple companies, including Equinor, Microsoft, and JinkoPower. The company will release its new organizational structure with pro-forma numbers on the renewables and mobility solutions businesses after the fourth-quarter results. With a business model that will look considerably different from what investors have been used to for decades, investors will need to look at a different set of metrics to gauge BP's performance over the coming years.

In this article, Trefis highlights the expected trends in key metrics to gauge BP's long-term performance and potential investor returns. Our interactive dashboard details the historical trends in BP's Revenues across segments along-with competitive comparisons with peers.

Profitability to be driven by newer businesses



In 2019, BP reported $283 billion of total revenues with $25 billion of underlying EBIDA (earnings before interest, depreciation & amortization excluding the impact of divestments), primarily supported by its upstream business.