The BP (LSE:BP) share price is back below 500p, hovering around 458p as I write. This is a pointed decline from March, when it briefly traded above 600p.

However, with a price-to-earnings (P/E) ratio above 30, the stock doesn’t look economical by uncomplicated metrics. So I ask myself, is it just about oil, or is sentiment influenced by the company’s deeper problems?

A shock in the conference room

Internally, BP has been going through quite troublesome times lately. In May, the board abruptly dismissed chairman Albert Manifold, citing “serious concerns” related to management standards, supervision and conduct. He held this position for only eight months.

Media reports covering this story mentioned complaints about an aggressive, “overbearing“management style – not the type of headline a FTSE100 the oil major wants.

And that’s not all. The development comes after years of rapid CEO turnover. Bernard Looney was forced out of his position in 2023 amid revelations of wrongdoing, and his successor, Murray Auchincloss, left in 2025 amid questions about BP’s performance and strategic direction.

Understandably, this has left investors scrambling to figure out who is really steering the ship.

New CEO Meg O’Neill, who took over in April, is trying to change the narrative. In a memo to staff, she described BP as operating in a world of… “considerable complexity” and we talked about providing energy.”“safely, reliably and effectively” while simplifying and strengthening the organization.

It is also reportedly returning to oil and core gas after BP’s more ambitious renewables push disappointed some shareholders.

So in the face of all the management chaos, the question is: Can up-to-date management rebuild trust, and if so, does the current low price offer an opportunity for value?

What the numbers look like

Despite the turbulent period, BP’s recent results have not been bad at all. Profit fell slightly to $7.5 billion, but cash flow remained sturdy at $24.5 billion. Debt of $22.2 billion is still high, but management is targeting a much lower range of $14 billion to $18 billion by 2027. It hopes to finance that debt through asset sales and suspended share buybacks.

The main attraction, of course, remains dividend income. In 2025, BP paid a total dividend of $0.25 per share, representing a yield of approximately 5.7%.

Here’s a uncomplicated snapshot:

In brief, sturdy cash flows continue to support the dividend, but you can see why the market isn’t particularly interested in buying the stock right now.

My verdict?

On a macro level, the recent decision by the United States to lift sanctions on Iranian crude oil exports for 60 days has resulted in a decline in oil prices. More importantly, it raised questions about future supply.

Iran has the third largest proven oil reserves in the world, estimated at approximately 209 billion barrels. The sustained return of kegs could put pressure on prices and major producers such as BP.

If Brent Crude returns to $50 a barrel, history suggests shares could fall below 300p. On the other hand, the situation in Iran is unstable and sanctions may be withdrawn if negotiations break down again.

Personally, I feel comfortable holding my current BP shares for now. However, given the management noise and oil price risks, I am cautious about adding more at today’s price until the outlook becomes brighter.

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Mark Hartley owns BP shares.