BP share buy-backs halted as profits slide under new CEO plan

Published: 10 February 2026. The English Chronicle Desk. The English Chronicle Online.

BP has suspended BP share buy-backs as annual profits fell sharply, intensifying scrutiny on its recovery plan. The energy giant reported underlying earnings of just below $7.5 billion for 2025, down from nearly $9 billion in 2024, reflecting the steepest global oil price drop since the Covid-19 pandemic. The focus on halting BP share buy-backs is seen as an effort to strengthen BP’s balance sheet while preparing for strategic shifts under its incoming chief executive.

The suspension marks the first time BP has stopped quarterly BP share buy-backs since the pandemic forced the company to record historic losses. Investors now watch closely as BP attempts to regain confidence after previous green energy strategies failed to deliver expected returns. The incoming CEO, Meg O’Neill, formerly of Woodside Energy, will assume leadership in April and is expected to enforce rigorous measures for the turnaround plan.

Interim chief executive Carol Howle highlighted progress across BP’s four main objectives: increasing cash flows, returning value to shareholders, cutting costs, and strengthening the balance sheet via asset sales. “There is more work to be done, and we are clear on the urgency to deliver,” Howle said. “We are in action and can and will do better for our shareholders.”

BP’s fourth-quarter earnings fell 30% compared with the previous quarter, totalling $1.54 billion, though this represented a 32% increase year-on-year and met City expectations. Analysts note the company faces growing pressure from activist shareholders calling for transparency on its long-term strategy amid declining fossil fuel demand.

Mark van Baal, founder of Follow This, criticised BP’s current approach, saying the company lacks a consistent strategic direction. “After a half-hearted energy transition, BP is now doubling down on fossil fuels in a shrinking market,” he said. The shareholder activist group has submitted a resolution requesting BP disclose plans for value creation under declining fossil fuel demand scenarios ahead of the annual investor meeting in April.

Despite these pressures, BP commissioned seven new oil and gas projects in 2025, aiming to prioritise fossil fuel operations after attempting a broader renewable energy push. Remarkably, five of these projects were completed ahead of schedule, highlighting operational efficiency but signalling a pivot away from green initiatives.

Meanwhile, rival Shell reported a 22% drop in adjusted earnings to $18.5 billion for the same year but continued robust share buy-backs worth $3.5 billion, marking its 17th consecutive quarter with buy-backs exceeding $3 billion. BP shares fell nearly 5% in early trading, reflecting investor concerns over dividend prospects and future profitability.

Industry experts note that BP’s strategy could influence wider market trends. By prioritising fossil fuel projects over green renewables, BP signals a cautious approach toward the energy transition, potentially affecting investor sentiment in the sector. Analysts warn that with global energy markets in flux, companies like BP must balance immediate shareholder returns with long-term sustainability objectives.

O’Neill’s leadership will be critical to navigating these challenges. Stakeholders expect her to bring a disciplined operational focus, realign strategic priorities, and rebuild investor trust. Success will depend on managing declining oil markets, executing high-value projects efficiently, and reassuring shareholders that BP’s renewed focus on fossil fuels will deliver sustainable profits in a shifting energy landscape.

As BP enters a pivotal year, the company faces the dual pressures of market volatility and activist scrutiny. Its suspension of BP share buy-backs underscores the urgency to stabilise finances, while investors await clear signals of how the company plans to thrive amid declining fossil fuel demand. With a new CEO at the helm, BP must demonstrate the capacity to adapt strategy, safeguard shareholder value, and possibly redefine its role in the evolving energy sector.

The halt of BP share buy-backs reflects BP’s cautious stance while it navigates operational, financial, and strategic uncertainties. Industry watchers suggest that how BP balances fossil fuel reliance with green investment ambitions will shape both its market reputation and long-term investor confidence. With global oil prices remaining unpredictable, BP’s performance this year will provide a critical indicator of resilience and adaptability.

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