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BP Halts Buybacks and Takes $4 Billion Low-Carbon Write-Down in Strategy Reset

BP is prioritizing balance‑sheet repair to reset investor confidence before Meg O’Neill takes over in April.

Overview

  • Full-year 2025 underlying profit fell about 16% to $7.49 billion, with fourth-quarter earnings of $1.54 billion matching analyst expectations.
  • Excess cash will be directed to debt reduction after scrapping guidance to return 30–40% of operating cash flow, and the quarterly dividend was maintained at 8.320 cents per share.
  • The company raised its structural cost‑savings goal to $5.5–6.5 billion by end‑2027 and set 2026 capital spending at $13–13.5 billion at the low end of guidance.
  • Shares dropped roughly 4–6% on the update; net debt stood near $22.2 billion at year‑end with a target range of $14–18 billion by 2027.
  • BP is shifting capital toward higher‑return oil and gas projects, highlighting Brazil’s Bumerangue discovery with appraisal drilling planned later in 2026.