BP has halted its share buyback programme after reporting a drop in annual profits, as the oil and gas group prepares for a strategic reset under a new chief executive. The move makes BP the first major oil company to pause buybacks amid a prolonged downturn in global oil prices.
The company reported underlying earnings of just under $7.5bn for 2025, down from nearly $9bn the previous year. Oil prices have fallen for a third consecutive year, weighing on profits across the sector, though rivals such as ExxonMobil, Chevron and Shell have continued returning cash to shareholders.
BP said it would suspend quarterly share buybacks for the remainder of the year, marking its first pause since the early stages of the pandemic. The decision followed a difficult period for the company, including a reversal of its renewable energy strategy and a $3.1bn write-down of its renewables business.
The announcement triggered a sharp fall in BP’s share price and has increased pressure on the company to present a clear turnaround plan. Incoming chief executive Meg O’Neill, who takes over in April, will work with the new chair to restore investor confidence and strengthen financial performance.
BP said it will redirect cash previously used for buybacks toward strengthening its balance sheet and investing in oil and gas production. The company commissioned several new fossil fuel projects last year as part of its renewed focus on its core energy business.
While BP reported a drop in fourth-quarter earnings compared with the previous quarter, results were higher than a year earlier and broadly met market expectations. The company continues to face criticism from some investors over its retreat from green investments and uncertainty about its long-term strategy as demand for fossil fuels is expected to slow.
