Oil major BP suspends buybacks in fresh sign of oil price pressure

British oil giant BP on Tuesday posted fourth-quarter profit in line with expectations and suspended share buybacks, seeking to shore up its balance sheet as lower crude prices take their toll.

The London-listed energy firm reported underlying replacement cost profit, used as a proxy for net profit, of $1.54 billion for the final three months of 2025. That matched analyst expectations of $1.54 billion, according to an LSEG-compiled consensus.

BP’s full-year 2025 net profit came in at $7.49 billion, missing analyst expectations of $7.58 billion. That’s down from nearly $9 billion in 2024.

BP said the board decided to suspend the share buyback and fully allocate excess cash “to accelerate strengthening” of its balance sheet.

“2025 was a year of strong underlying financial results, strong operational performance, and meaningful strategic progress,” Carol Howle, BP interim chief executive officer, said in a statement.

“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,” she added.

The results come at a tough time for Europe’s oil and gas sector.

Oil prices notched their biggest annual loss since the Covid-19 pandemic last year, partly due to oversupply concerns, ratcheting up the pressure on Big Oil’s commitment to shareholder returns.

BP’s industry rivals Equinor and Shell both reported weaker quarterly earnings last week, citing lower crude prices, among other factors.

Equinor announced it would reduce share buybacks to $1.5 billion this year, down from $5 billion last year, while also trimming investments in its renewables and low-emission energy projects.

Shell, for its part, kept its buybacks steady at $3.5 billion, a move that marked the firm’s 17th consecutive quarter of $3 billion or more in buybacks.

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