BP has suspended its share buybacks as it pursues cost-cutting measures, while profits last quarter were in line with estimates.
Its underlying replacement cost profit was US$1.54 billion, falling from $2.21 billion in the previous quarter but up from $1.17 billion one year ago. This matched LSEG estimates.
“2025 was a year of strong underlying financial results, strong operational performance, and meaningful strategic progress. We have made progress against our four primary targets - growing cash flow and returns, reducing costs, and strengthening the balance sheet - but know there is more work to be done, and we are clear on the urgency to deliver,” said interim CEO Carol Howle.
“With a continued emphasis on capital discipline and returns, we are reducing capital expenditure for 2026 to the lower end of the guidance range, while continuing to drive down our cost base.”
The company will halt share buybacks and allocate its excess cash towards strengthening its balance sheet, BP said. Its most recent share buyback, announced in November, was $750 million.
It increased its cost reduction target to $5.5-6.5 billion by the end of 2027, rising from $5 billion. Woodside Energy CEO Meg O'Neill will begin as BP's CEO from April 2026.
BP’s loss attributable to shareholders last quarter was $3.42 billion, deepening from a loss of $1.96 billion year-over-year. Adjusted EBITDA was $8.96 billion, up from $8.41 billion.
Net debt was $22.18 billion, dropping from $26.05 billion in the prior quarter and $23.00 billion a year ago. Its 2026 capital expenditure budget is $13-13.5 billion, it said.
Oil prices plummeted by 19% across 2025, partly due to a glut in supply amid repeated OPEC+ output hikes. Fellow British oil major Shell fell below estimates last quarter.
BP (LSE: BP) shares closed 6.7% lower at UK£445.65. Its market capitalisation is £69.55 billion.
