BP Gross Margin Analysis

Gross margin measures the percentage of revenue a company keeps after covering the direct costs of producing its product; at 20.6%, BP keeps about $0.21 of each sales dollar for overhead and profit.

Among sector peers with a median of 47.4%, BP sits at the 13th percentile, meaning roughly 87% of peers earn a higher gross margin. Quarter over quarter, the margin fell 14.9% from 24.2% to 20.6%, while the year-over-year change is not available. This level, far below the sector midpoint, combined with a steep recent decline, points to compressed pricing or rising input costs that elevate near-term earnings risk. The low absolute margin and downward trajectory support caution but are partly expected for an integrated oil major, whose overall verdict is neutral. This metric contradicts the neutrality in the sense that it flags operational pressure, though it does not override the balanced outlook.

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