BP’s Q4 2025 Profits Meet Expectations
BP has reported its fourth-quarter profits for 2025, achieving an underlying replacement cost profit of $1.54 billion. This figure represents a 32% increase from the previous year and aligns with market expectations. The company is preparing for leadership changes, as new CEO Meg O’Neill will take over in April.
Financial Overview
During the fourth quarter, BP decided to suspend its share buyback program. This move allows the company to direct excess cash towards investments in oil and gas projects. Over the last three months, BP had repurchased shares totaling $750 million.
Impairments Recorded
Despite the positive profit announcement, BP reported impairments totaling $4.2 billion during the same quarter. These impairments were mostly attributed to issues within its solar energy division, Lightsource BP, and its U.S. biogas operations, Archaea.
Strategic Moves
Further demonstrating its strategic focus, BP sold a minority stake in its U.S. onshore oil fields for $1.5 billion. This maneuver indicates the company’s ongoing adjustments in response to market conditions and operational challenges.
Key Financial Metrics
| Metric | Value |
|---|---|
| Fourth-Quarter Profit | $1.54 billion |
| Year-on-Year Increase | 32% |
| Share Buyback Amount | $750 million |
| Total Impairments | $4.2 billion |
| Stakes Sold in Onshore Fields | $1.5 billion |
BP’s quarterly performance highlights both opportunities and challenges for the energy giant. As the company transitions to new leadership, its financial strategies will be crucial for future growth.
