BP has reported a 16% drop in annual income following the hunch in wholesale oil costs in direction of the tip of 2025.
The corporate, which is awaiting the arrival of a brand new chief govt in April amid its renewed drive for oil and gasoline earnings, reported web income of $7.5bn (£5.5bn).
BP mentioned it had made progress towards its 4 fundamental targets, together with rising money circulation and lowering prices, however was going additional.
It suspended share buybacks to assist unlock extra cash for oil and gasoline alternatives.
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Interim chief govt Carol Howle advised buyers: “With a continued emphasis on capital self-discipline and returns, we’re lowering capital expenditure for 2026 to the decrease finish of the steering vary, whereas persevering with to drive down our price base.
“We’re additionally taking decisive motion to high-grade our portfolio and strengthen our firm, together with the execution of our $20bn disposal programme and the choice to droop the share buyback and totally allocate extra money to our steadiness sheet.
“These choices place us to progress long-term worth development via the distinctive alternative set we’re creating in our upstream enterprise, together with the Bumerangue discovery in Brazil, the place our preliminary estimates point out round 8 billion barrels of liquids in place.”
BP shares – up 10% thus far this 12 months forward of Tuesday’s market open – had been greater than 3.5% decrease.
The corporate is stepping up a concentrate on maximising extra profitable oil and gasoline alternatives on the expense of funding in renewables.
BP embraced options underneath the management of Bernard Looney however he left under a cloud in 2023 over the disclosure of relationships with BP colleagues.
Murray Auchincloss was eliminated as CEO in December. Pic: AP
The corporate modified course underneath strain from main buyers as BP’s share value lengthy lagged development seen by all its main rivals, together with Shell.
The architect of that shift again to fossil fuels, Murray Auchincloss, was proven the door in December – the primary main transfer by BP’s new chairman Albert Manifold, amid continued shareholder frustration over the progress of BP’s turnaround.
Meg O’Neill, the pinnacle of Australia’s Woodside Power since 2021, is to succeed him in April because the board seeks to construct on latest progress in recapturing investor worth.
Meg O’Neill. Pic: BP
Nonetheless, on the identical time there stay voices amongst BPs shareholders arguing for a extra balanced method to funding within the power future on each local weather and demand grounds.
The environment-focused shareholder foyer group Observe This argued that BP’s earnings figures demonstrated it was on the improper path.
Its chief govt, Mark van Baal, mentioned: “BP is in dire straits as a result of the corporate has drifted with out a constant strategic route.
“After a half-hearted power transition, the corporate is now doubling down on fossil fuels in a market that can quickly begin to shrink.
“If BP can not develop income and restore its dividend in a rising market, how will the corporate create shareholder worth in a declining one?”
