BP Suspends Buyback, Caps Expenditure at $13.5B After Soft Q4
On February 13, Freedom Finance analyst Sergey Pigarev downgraded BP from Hold to Sell while keeping its price target at $37, citing soft Q4 results and suspending its buyback. It will cap capital expenditure at $13.5 billion, down from $14.5 billion, raising its cost-cut target to $6.5 billion by end-2027.
1. Analyst Downgrade
On February 13, Freedom Finance analyst Sergey Pigarev downgraded BP from Hold to Sell, maintaining a $37 price target after characterising the energy group’s Q4 results as soft and warning that further oil market weakness could weigh materially on earnings.
2. Buyback Suspension
BP has suspended its share repurchase programme, becoming the only top-five oil major without a buyback scheme, as it shifts focus toward production growth and repairing its financial position rather than prioritising shareholder payouts.
3. Capex and Cost-Reduction Plans
BP plans to cut capital expenditure from $14.5 billion in 2025 to no more than $13.5 billion, and has increased its cost-reduction target to $6.5 billion by end-2027, up from a previous goal of $5 billion.