Trowbridge in Somerset, England on March 15, 2025.
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British oil giant P.A. The group posted a fourth-quarter profit in line with expectations on Tuesday and suspended share buybacks, seeking to shore up its balance sheet as falling crude prices take their toll.
The London-listed energy company reported underlying replacement cost profit, used as a proxy for net profit, of $1.54 billion for the last three months of 2025. That matched analysts’ expectations of $1.54 billion, according to a consensus compiled by LSEG.
BP’s full-year 2025 net profit came in at $7.49 billion, below analysts’ expectations of $7.58 billion. That’s down from nearly $9 billion in 2024.
BP said the board had decided to suspend the share buyback and fully allocate excess cash “to accelerate the strengthening” of its balance sheet. The company’s previous buyout was for $750 million and was announcement alongside third quarter results in November.
For the fourth quarter, the company announced a dividend per common share of 8.320 cents.
“2025 was a year of strong underlying financial results, strong operational performance and significant strategic progress,” Carol Howle, BP’s interim CEO, said in a statement.
“We have made progress against our four main objectives – increasing cash flow and returns, reducing costs and strengthening the balance sheet – but we know there is still work to do and we are clear on the urgency of getting there,” she added.
Woodside Energy boss Meg O’Neill is expected to take the reins of BP on April 1, following Murray Auchincloss’ decision to step down late last year.
BP shares fell nearly 4% in early afternoon trading, paring some of its losses from earlier in the session.
Here are some other benefit highlights:
BP’s net debt in the fourth quarter was $22.18 billion, compared to about $23 billion in the same period last year.Operating cash flow for the fourth quarter was $7.6 billion, up from $7.43 billion a year ago.BP set its 2026 capital budget at between $13 billion and $13.5 billion, reflecting the lower end of its forecast range. These results come at a difficult time for the European oil and gas sector.
Oil prices have increased biggest annual loss since the Covid-19 pandemic last year, partly due to oversupply concerns, increase the pressure on Big Oil’s commitment to shareholder returns.
BP’s industrial rivals Equinor And Shell both reported weaker quarterly profits last week, citing falling crude prices among other factors.
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BP, Equinor and Shell shares year-to-date
Equinor announcement it would cut share buybacks to $1.5 billion this year, from $5 billion last year, while also cutting investments in its renewable energy and low-emissions energy projects.
Shell, for its part, kept its buybacks stable at $3.5 billiona move that marked the 17th consecutive quarter of buybacks of $3 billion or more for the company.
BP’s decision to suspend its share buybacks should be seen as a prudent move to prioritize balance sheet strength amid falling commodity prices, according to Maurizio Carulli, global energy analyst at Quilter Cheviot.
“As part of former CEO Murray Auchincloss’ ‘strategy reset’ last April, buybacks had already been reduced from $1.75 billion per quarter to $750 million. The decision to cancel them entirely indicates a more cautious stance and a clear focus on financial resilience,” Carulli said.
“While the move was not a complete surprise to the market, particularly after similar actions by other oil majors, some short-term investors may be disappointed, which helps explain the stock price weakness seen today. However, prioritizing balance sheet strength in a weaker commodity price environment is a prudent move.