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

Core Viewpoint - BP reported fourth-quarter profit in line with expectations but suspended share buybacks to strengthen its balance sheet amid lower crude prices [1][2]. Financial Performance - BP's underlying replacement cost profit for Q4 2025 was $1.54 billion, matching analyst expectations [1]. - The full-year 2025 net profit was $7.49 billion, below the expected $7.58 billion, and down from nearly $9 billion in 2024 [2]. Strategic Decisions - The board decided to suspend share buybacks to fully allocate excess cash towards strengthening the balance sheet [2]. - BP's interim CEO highlighted progress in cash flow growth, cost reduction, and balance sheet strengthening, while acknowledging the need for further work [3]. Industry Context - The results were released during a challenging period for Europe's oil and gas sector, with oil prices experiencing their largest annual loss since the Covid-19 pandemic due to oversupply concerns [3]. - Competitors Equinor and Shell also reported weaker earnings, with Equinor reducing its share buybacks significantly and Shell maintaining steady buybacks [4].