BP has reported a 16% drop in annual profits following the slump in wholesale oil prices towards the end of 2025.
The company, which is awaiting the arrival of a new chief executive in April amid its renewed drive for oil and gas earnings, reported net profits of $7.5bn (£5.5bn).
BP said it had made progress against its four main objectives, including growing cash flow and reducing costs, but was going further.
It suspended share buybacks to help unlock more cash for oil and gas opportunities.
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Interim chief executive Carol Howle told investors: “With a continued emphasis on capital discipline and returns, we are reducing capital expenditure for 2026 to the lower end of the guidance range, while continuing to drive down our cost base.
“We are also taking decisive action to high-grade our portfolio and strengthen our company, including the execution of our $20bn disposal programme and the decision to suspend the share buyback and fully allocate excess cash to our balance sheet.
“These decisions position us to progress long-term value growth through the distinctive opportunity set we are creating in our upstream business, including the Bumerangue discovery in Brazil, where our initial estimates indicate around 8 billion barrels of liquids in place.”
BP shares – up 10% so far this year ahead of Tuesday’s market open – were more than 3.5% lower.
The company is stepping up a focus on maximising more lucrative oil and gas opportunities at the expense of investment in renewables.
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