BP Suspends Buybacks After $3.4 B IFRS Loss, Cuts 2025 Capex 10%
BP reported Q4 2025 underlying profit of $1.5 billion but incurred a $3.4 billion IFRS loss after $4 billion of impairments. Full-year capex fell 10% to $14.5 billion, and management suspended share repurchases while forecasting $13–13.5 billion capex and $9–10 billion divestments in 2026.
1. Q4 2025 Results and Impairments
BP reported underlying profit of $1.5 billion in Q4 2025 but recorded a $3.4 billion IFRS loss after absorbing $4 billion of asset impairments, reflecting challenges in its upstream portfolio.
2. Capital Expenditure Trends
In the full year 2025, BP reduced capital expenditure by 10% to $14.5 billion, demonstrating disciplined investment cuts across exploration and refining operations.
3. Share Repurchase Suspension
Management suspended the share buyback program to strengthen the balance sheet and prioritize disciplined capital allocation, pausing returns to shareholders amid market uncertainties.
4. 2026 Outlook and Analyst Reaction
BP forecasts 2026 capex of $13–13.5 billion and expects $9–10 billion in divestment proceeds; Piper Sandler raised its price target to $44 from $43 and retained a Neutral rating citing valuation and balance sheet headwinds.