BP Reports Fourth Quarter and Full-Year 2025 Financials
British oil giant BP reported an underlying replacement cost profit of $1.54 billion for the fourth quarter of 2025, aligning with analyst expectations. For the full year 2025, net profit reached $7.49 billion, falling below analyst estimates of $7.58 billion and representing a decrease from $9 billion in 2024.
The company's board decided to suspend its share buyback program, redirecting excess cash to strengthen its balance sheet. This decision follows a previous buyback of $750 million announced in November. BP also declared a fourth-quarter dividend of 8.320 cents per ordinary share.
Strategic Context and Leadership Transition
Interim CEO Carol Howle stated that 2025 showed strong underlying financial results, operational performance, and strategic progress.
She acknowledged that ongoing work is required to meet targets, including growing cash flow, increasing returns, reducing costs, and strengthening the balance sheet.
Meg O'Neill, Woodside Energy boss, is scheduled to assume the role of BP CEO on April 1, following Murray Auchincloss's departure.
Market Reaction and Sector Trends
Following the announcement, BP shares experienced a 5.4% decline during morning trading.
The results come amid a challenging period for Europe's oil and gas sector. Oil prices recorded their largest annual loss since the Covid-19 pandemic in 2024, influenced by oversupply concerns. Other major energy companies, including Equinor and Shell, also reported reduced quarterly earnings, citing lower crude prices as a contributing factor.
Key Financial Highlights (Q4 2025)
- Net Debt: $22.18 billion (decreased from approximately $23 billion in the same period last year).
- Operating Cash Flow: $7.6 billion (increased from $7.43 billion a year ago).
- 2026 Capital Expenditure Budget: Set at $13 billion to $13.5 billion, reflecting the lower end of its guidance range.