BP (BP.L) has halted its share buyback programme after reporting fourth quarter profits in line with expectations, as crude prices slipped below $60 a barrel for the first time in almost five years.
The London-listed oil major posted underlying replacement cost profit of $1.54bn for the final three months of 2025, matching the $1.54bn forecast by analysts, according to an LSEG compiled consensus.
Full-year net profit for 2025 came in at $7.49bn, slightly below analysts’ expectations of $7.58bn and down from almost $9bn in 2024.
The last time the oil major did not launch a quarterly buyback was in 2020, during the early stages of the coronavirus pandemic, when oil (BZ=F) prices slumped and energy companies moved to protect their balance sheets.
477.65 -0.40 (-0.08%)
As of 9 February at 19:08:13 GMT. Market open.
BP’s previous buyback was $750m, announced in November alongside its third quarter results. The group had cut its buyback in April last year from $1.75bn.
The results come at a challenging moment for Europe’s oil and gas sector. Oil prices recorded their steepest annual decline since the COVID-19 pandemic last year, weighed down by concerns over oversupply and intensifying pressure on big producers to maintain shareholder returns.
Carol Howle, interim chief executive officer, said: “2025 was a year of strong underlying financial results, strong operational performance, and meaningful strategic progress. 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.”
Alongside the results, BP increased its structural cost reduction target to between $5.5bn and $6.5bn by the end of 2027, up from a previous goal of up to $5bn. Net debt stood at $22.18bn at the end of the quarter, excluding about $6bn of proceeds expected from the sale of a majority stake in its Castrol lubricants business, announced in December.
The company is targeting $20bn of asset sales by 2027 and has reshaped its leadership as it dials back its push into renewables. Meg O’Neill, formerly chief executive of Australia’s Woodside Energy, will take over as BP chief executive in April, while Albert Manifold became chair in October.
BP also said it had agreed to sell $1.5bn of its oil and gas pipelines in the US Permian and Eagle Ford basins to Sixth Street, the investment firm.
Brent crude fell by about 20% last year and is expected to decline further this year as additional supply comes on to the market. However, prices have rebounded so far this year, with Brent rising by more than $7 a barrel to above $69 amid concerns that a potential conflict involving Iran could disrupt supplies.