BP suspends share buybacks

(Sharecast News) - BP Group has halted share buybacks, the oil major confirmed on Tuesday, as it looks to bolster its balance sheet amid falling oil prices. The blue chip traditionally spends billions repurchasing shares, including $750m in the last quarter.

But posting fourth quarter and full-year numbers, BP said it would now allocate excess cash to "accelerate strengthening of our balance sheet", noting: "This creates a strong platform to invest with discipline into our distinctive deep hopper of oil and gas opportunities."

It will, however, maintain dividend payouts.

The update came as BP posted underlying replacement cost (RC) profit - its key measure of income - of $1.5bn in the fourth quarter. That was down sharply on the previous three months but up 32% year-on-year and largely in line with expectations.

Over the year to December end, RC profit fell to $7.5bn from $8.9bn, weighed down by falling oil prices. Brent crude has lost around 20% over the last year, largely due to oversupply and heightened geopolitical volatility, and is expected to continue falling this year.

Annual adjusted earnings before interest, tax, depreciation and amortisation fell to $37.6bn from $38bn, while net debt was little changed at $22.2bn.

Carol Howle, interim chief executive, said: "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."

Looking to the current year, and BP said it was reducing capital expenditure to the lower end of the guidance range, while continuing to cut costs. Capex is now forecast to be between $13bn and $13.5bn, weighted to the first half.

It also expects reported upstream production to be broadly flat in the first quarter compared to the final three months of 2025.

For the full year, reported upstream production is forecast to be slightly lower against 2025, with underlying upstream production broadly flat. Within that, oil production is set to be largely unchanged, but gas and low carbon production is slated to soften.

Executive vice president Howle took over as interim head late last year, following the abrupt departure of Murray Auchincloss.

He is being replaced by Woodside Energy's Meg O'Neill, who is joining in April, the first external hire to the post in over a century. She will also be BP's first female permanent chief executive.