BP scraps £550m shareholder payout in scramble to cut debts

Core Viewpoint - BP is facing significant financial challenges, leading to the cancellation of a $750 million shareholder payout and the suspension of its share buyback program as it aims to reduce its $22 billion debt burden [1][2]. Financial Performance - BP reported a $3.4 billion loss for the three months ending in December, a stark contrast to a $1.2 billion profit in the previous quarter, attributed to weaker crude oil prices [5]. - The company's underlying replacement costs profit decreased from $8.9 billion to $7.5 billion for the year, with a 16% decline over the quarter [5]. - An impairment charge of $4 billion was recorded in its "low carbon energy" division, part of a broader write-down related to BP's net zero commitments [6]. Leadership Changes - The sudden exit of CEO Murray Auchincloss has prompted BP to appoint Meg O'Neill, the first female CEO in the company's history, to lead the organization [2][3]. - Interim CEO Carol Howle has expressed a commitment to improving performance and shareholder returns [4]. Strategic Shifts - BP has abandoned its previous strategy focused on renewables and green energy transition, which was introduced in 2020, in response to shareholder backlash [8]. - The company is now increasing investments in oil and gas and is in the process of selling $20 billion in assets [10]. Market Conditions - BP had anticipated an oil price of around $76 per barrel for the year, but it is currently trading at approximately $69, adding financial pressure [1][7].