LONDON (Realist English). British oil and gas major BP reported fourth-quarter earnings in line with expectations on Tuesday but announced it would suspend share buybacks, shifting its focus toward strengthening the balance sheet as lower crude prices squeeze profits.
BP posted an underlying replacement cost profit of $1.54 billion for the final three months of 2025, matching the consensus forecast compiled by LSEG. Full-year net profit stood at $7.49 billion, slightly below analysts’ expectations of $7.58 billion and down from nearly $9 billion in 2024.
The company said the board had decided to halt share repurchases and allocate excess cash to reinforcing its financial position. The previous $750 million buyback programme was announced alongside third-quarter results in November. BP declared a quarterly dividend of 8.320 cents per ordinary share.
Interim chief executive Carol Howle said the company delivered solid operational and financial performance in 2025 but stressed the need for faster progress. “We have made advances on growing cash flow and returns, reducing costs and strengthening the balance sheet, but there is more work to be done and urgency to deliver,” she said.
BP’s net debt declined to $22.18 billion at the end of the quarter from about $23 billion a year earlier, while operating cash flow rose to $7.6 billion from $7.43 billion. The company set its 2026 capital expenditure budget at $13 billion to $13.5 billion, at the lower end of its guidance range.
Shares in BP fell nearly 4% shortly after the market opened, making the stock one of the weakest performers on the pan-European Stoxx 600 index.
The results come amid broader pressure on Europe’s oil and gas sector after crude prices recorded their sharpest annual decline since the Covid-19 pandemic. Industry peers Equinor and Shell also reported weaker quarterly earnings last week, with Equinor cutting buybacks sharply while Shell kept its repurchase programme unchanged.
