BP said it would suspend share buybacks and allocate excess cash to strengthen its balance sheet after reporting a fourth-quarter loss.
The British energy company posted a $3.4 billion loss in the fourth quarter, compared with a $1.2 billion profit in the previous quarter. The loss included $4.3 billion in adjustments, mainly related to impairments in its gas and low-carbon energy businesses.
Underlying replacement cost profit, which excludes exceptional items, was $1.5 billion for the quarter, down from $2.2 billion in the third quarter and below analysts’ expectations. The company cited lower oil prices, an adverse upstream production mix, and reduced refinery throughput due to higher maintenance activity as factors weighing on performance.
For full-year 2025, BP reported underlying replacement cost profit of $7.5 billion, down from $8.9 billion in 2024, reflecting a weaker oil price environment.
In a significant strategic shift, BP said it would halt share buybacks and fully allocate excess cash to balance-sheet strengthening. The move would create “a strong platform to invest with discipline in our distinctive oil and gas opportunity set,” the company said.
“We are taking decisive action to improve our portfolio and strengthen our company, including executing our $20 billion divestment programme and the decision to suspend share buybacks,” said Carol Howle, interim chief executive.
BP also said it would cut capital expenditure for 2026 to the lower end of its guidance range, while continuing to reduce costs. The company raised its structural cost-reduction target to $5.5–$6.5 billion by the end of 2027.
Despite the quarterly loss, BP maintained its dividend at 8.32 cents per share. The company highlighted operational achievements, including record upstream plant reliability of 96.1% for the full year and the completion of seven major projects in 2025.
BP also reported progress on its divestment programme, with expected proceeds from completed and announced disposals now above $11 billion, including around $6 billion from the planned sale of a 65% stake in Castrol.
