BP Q4 Profit Slumps 10% to $7.5B, $1.6B Buyback Ends
BP’s adjusted replacement cost profit fell 10% to $7.5 billion in Q4, missing forecasts while refining margins dropped 15% and commodity prices eased 5%. The group will end its $1.6 billion share buyback after repurchasing $1.3 billion to preserve cash for debt reduction and future investments.
1. Q4 Earnings Decline
BP reported that adjusted replacement cost profit fell 10% year-over-year to $7.5 billion in the fourth quarter, below analyst forecasts of $8.2 billion. The decline was driven by a 15% drop in refining margins and a 5% decrease in average selling prices across its commodity portfolio.
2. Buyback Program Conclusion
The company stated it will conclude its $1.6 billion share repurchase plan after repurchasing $1.3 billion of stock this quarter. Management cited the need to conserve cash for debt reduction and to fund planned capital projects amid rising interest costs.
3. Market Reaction and Outlook
Shares slid roughly 3% in London trading following the earnings update and buyback announcement. BP maintained its 2026 production guidance at 3.8 million barrels of oil equivalent per day and said future dividend increases will hinge on prevailing oil price trends.