BP Suspends Buybacks, Redirects Cash to Cut $22.2B Net Debt
BP has halted share buybacks to fully allocate excess cash to reducing its $22.2 billion net debt, following a $10.1 billion Castrol stake sale and other disposals. In Q4, adjusted EPS hit $0.60 versus $0.59 forecast while revenue of $47.38 billion missed $49.36 billion estimates.
1. Buyback Suspension and Debt Focus
BP’s board has paused its share repurchase programme indefinitely to prioritize net debt reduction, reallocating funds from buybacks after completing a $10.1 billion sale of its Castrol lubricants stake and advancing its $20 billion disposal programme.
2. Q4 Earnings and Revenue Shortfall
In the fourth quarter, adjusted earnings per ADS reached $0.60, narrowly topping the $0.59 consensus, while total revenue of $47.38 billion fell short of the $49.36 billion analysts’ forecast, resulting in a $3.42 billion attributable loss versus $2.0 billion a year earlier.
3. Balance Sheet Strengthening and Outlook
Operating cash flow rose to $7.60 billion as capital expenditures amounted to $4.17 billion and divestment proceeds totaled $3.6 billion, leaving net debt at $22.2 billion; BP will maintain its quarterly dividend of 8.32 cents and aims to cut net debt to $14–18 billion by end-2027.