WS Investor
10 Feb 2026, 21:25
bp reported solid underlying performance for the fourth quarter and full year 2025 despite a weaker oil price environment, while announcing a shift in capital allocation to accelerate balance sheet strengthening.
For FY 2025, underlying replacement cost (RC) profit reached $7.5 billion, supported by strong operations across upstream and downstream. Operating cash flow totaled $24.5 billion, while net debt ended the year at $22.2 billion. Upstream plant reliability hit a record 96.1%, reserves replacement rose to 90%, and refining availability reached a record 96.3%. bp also started up seven major projects during the year and delivered its strongest customers segment earnings since 2019.
In the fourth quarter, underlying RC profit was $1.5 billion, down from $2.2 billion in Q3, reflecting lower upstream realizations, refinery outages and seasonal demand softness. bp reported a net loss of $3.4 billion in Q4, largely due to $4.3 billion of adverse adjusting items, including impairments mainly linked to gas and low-carbon transition businesses. Operating cash flow for the quarter was $7.6 billion, and net debt declined quarter on quarter, helped by $3.6 billion of divestment proceeds.
Strategically, bp said expected proceeds from completed and announced divestments now exceed $11 billion, including an agreement to sell a 65% stake in Castrol for around $6 billion. The company raised its structural cost reduction target to $5.5–6.5 billion by end-2027 and announced the suspension of share buybacks, with excess cash to be directed toward strengthening the balance sheet. Capital expenditure for 2026 has been set at $13–13.5 billion, at the lower end of guidance.
Interim CEO Carol Howle said bp made “meaningful strategic progress” in 2025 but emphasized urgency in further reducing costs and reinforcing the balance sheet. bp also confirmed that Meg O'Neill will join as chief executive in April, as the company looks to position itself for long-term value growth, particularly through its upstream portfolio, including the Bumerangue discovery in Brazil.
For FY 2025, underlying replacement cost (RC) profit reached $7.5 billion, supported by strong operations across upstream and downstream. Operating cash flow totaled $24.5 billion, while net debt ended the year at $22.2 billion. Upstream plant reliability hit a record 96.1%, reserves replacement rose to 90%, and refining availability reached a record 96.3%. bp also started up seven major projects during the year and delivered its strongest customers segment earnings since 2019.
In the fourth quarter, underlying RC profit was $1.5 billion, down from $2.2 billion in Q3, reflecting lower upstream realizations, refinery outages and seasonal demand softness. bp reported a net loss of $3.4 billion in Q4, largely due to $4.3 billion of adverse adjusting items, including impairments mainly linked to gas and low-carbon transition businesses. Operating cash flow for the quarter was $7.6 billion, and net debt declined quarter on quarter, helped by $3.6 billion of divestment proceeds.
Strategically, bp said expected proceeds from completed and announced divestments now exceed $11 billion, including an agreement to sell a 65% stake in Castrol for around $6 billion. The company raised its structural cost reduction target to $5.5–6.5 billion by end-2027 and announced the suspension of share buybacks, with excess cash to be directed toward strengthening the balance sheet. Capital expenditure for 2026 has been set at $13–13.5 billion, at the lower end of guidance.
Interim CEO Carol Howle said bp made “meaningful strategic progress” in 2025 but emphasized urgency in further reducing costs and reinforcing the balance sheet. bp also confirmed that Meg O'Neill will join as chief executive in April, as the company looks to position itself for long-term value growth, particularly through its upstream portfolio, including the Bumerangue discovery in Brazil.