BP suspends share buyback plan after oil prices pressure

ISTANBUL

BP suspended share buybacks and reported fourth-quarter profit Tuesday that was in line with forecasts, in an effort to strengthen its balance sheet as lower oil prices take a toll.

For the last three months of 2025, the London-listed energy company recorded underlying replacement cost profit, which is a stand-in for net profit, of $1.54 billion.

BP's 2025 full-year net profit amounted to $7.49 billion, falling short of expectations, also down from $8.9 billion in 2024.

The company said its board agreed to halt the share purchase and use all of the extra funds "to accelerate strengthening" of the company's financial sheet. The company previously repurchased $750 million, which was revealed in November along with its third-quarter earnings.

In the fourth quarter, the firm declared an 8.320-cent dividend per common share.

“2025 was a year of strong underlying financial results, strong operational performance, and meaningful strategic progress,” Carol Howle, BP interim CEO, 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.

BP's shares were down 6.4% after the announcement.

The financial results coincide with a difficult period for the oil and gas industry in Europe.

Due in part to worries about oversupply, oil prices had their largest yearly decline last year since the coronavirus pandemic, further undermining oil companies’ dedication to shareholder returns.