BP Q4 2025 underlying RC profit falls 32% to $1.5bn

Core Viewpoint - BP reported a significant decline in underlying replacement cost profit for Q4 2025, reflecting challenges in upstream realizations and refining operations, while also announcing a suspension of its share buyback program to strengthen its balance sheet [1][2][3]. Financial Performance - BP's underlying replacement cost profit for Q4 2025 was $1.5 billion, a 32% decrease from $2.2 billion in Q3 2025, but a 25% increase from $1.2 billion in Q4 2024 [1]. - Total revenues and other income for Q4 2025 were $47.7 billion, a 1% decrease compared to $48.1 billion in Q4 2024 [2]. - For the full year 2025, BP reported an underlying replacement cost profit of $7.5 billion, a 16% decrease from $8.9 billion in 2024 [5]. Operational Challenges - The decline in Q4 profit was attributed to lower upstream realizations and a change in production mix, alongside weakened refining results due to reduced throughput and a temporary outage at the Whiting refinery [1][3]. - BP reported a loss of $3.4 billion for Q4 2025, which included an inventory holding loss of $700 million after tax and adjusting items that reduced results by $4.3 billion after tax [3]. Strategic Actions - The company has suspended its share buyback program and is reducing capital expenditure for 2026 to the lower end of the guidance range to support its balance sheet [2][5]. - BP is executing a $20 billion disposal program and reallocating excess cash to strengthen its financial position [6]. Future Outlook - BP's interim CEO emphasized the importance of capital discipline and the need for continued progress in cash flow growth, cost reduction, and balance sheet strengthening [4]. - The company is focusing on long-term value growth opportunities, particularly in its upstream business, including the Bumerangue discovery in Brazil, estimated to contain around eight billion barrels of liquids in place [7].