British oil giant BP has reported its fourth-quarter profit for 2025, landing at $1.54 billion-aligning with analyst expectations amid challenging market conditions. The company has opted to suspend share buybacks in a bid to fortify its balance sheet, as lower crude prices exert pressure on profitability. BP’s full-year net profit for 2025 reached $7.49 billion, falling short of the anticipated $7.58 billion and reflecting a decline from nearly $9 billion in 2024.
In a statement, interim CEO Carol Howle expressed confidence in the firm’s operational achievements, noting, “2025 was a year of strong underlying financial results, strong operational performance, and meaningful strategic progress.” She highlighted BP’s commitment to enhancing cash flow, reducing costs, and reinforcing the balance sheet. Despite these positive indicators, Howle acknowledged the urgency of further progress.
The decision to pause share repurchases follows the company’s previous $750 million buyback announcement alongside its third-quarter results last November. BP also declared a dividend of 8.320 cents per ordinary share for the fourth quarter. Financial metrics reveal a decrease in net debt to $22.18 billion from around $23 billion during the same time last year, while operating cash flow rose to $7.6 billion, compared to $7.43 billion in 2024.
These results arrive amid a turbulent climate for Europe’s oil and gas sector, marked by a significant downturn in oil prices-the worst annual decline since the Covid-19 pandemic. Concerns over oversupply have intensified the scrutiny on major oil companies’ pledges to shareholders. Rivals Equinor and Shell have also reported disappointing quarterly earnings, attributing poor performance to reduced crude prices and shifting market dynamics.
Equinor has announced it will scale back its share buybacks to $1.5 billion for the current year, down from $5 billion last year, and plans to cut back on investments in renewables and low-emission energy projects. In contrast, Shell has maintained its buyback program at $3.5 billion, marking the company’s 17th consecutive quarter with buybacks exceeding $3 billion.
In a notable leadership change, Meg O’Neill, currently at Woodside Energy, is set to take over as BP’s CEO on April 1, succeeding Murray Auchincloss, who stepped down late last year. Following the earnings announcement, BP’s shares fell by 5.4%, putting the company among the lower performers in the pan-European Stoxx 600 index.
With ongoing volatility in the oil market and shifts in energy strategy, BP’s future direction will be crucial in navigating these challenges and sustaining investor confidence as it adapts to a rapidly evolving landscape.
Original Source: https://www.cnbc.com/2026/02/10/bp-earnings-q4-full-year-oil-energy.html
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Publish Date: 2026-02-10 14:31:00
