BP suspends buybacks as $4B impairment triggers heavy quarterly loss

BP (NYSE:BP) reported a substantial fourth-quarter net loss of $3.42 billion on Tuesday, as the British energy major took a massive $4.3 billion post-tax impairment charge primarily linked to its "transition businesses" in the gas and low-carbon energy segments.

The loss, equivalent to $1.33 per share, marks a sharp reversal from the profit seen in earlier quarters and underscores the financial friction as the company recalibrates its long-term green energy strategy.

Despite the headline loss, BP’s operational performance showed resilience in a cooling price environment.

Underlying replacement cost profit—the company's proxy for net income—totaled $1.54 billion, or 60 cents per American Depositary Share (ADS).

This surpassed the 57 cents per share consensus estimate from analysts surveyed by Zacks Investment Research.

Revenue for the period came in at $47.74 billion.

For the full year 2025, BP recorded a razor-thin profit of $55 million on total revenue of $192.55 billion, reflecting the heavy weight of year-end writedowns and a 20% decline in global oil prices throughout the year.

The most significant takeaway for investors was BP’s decision to suspend its share buyback program.

This move, which breaks a multi-year streak of heavy capital returns, is intended to accelerate the strengthening of the company’s balance sheet.

BP aims to use excess cash flow to reduce net debt, which stood at approximately $22.5 billion at year-end, as it prepares for a leadership transition with Meg O’Neill set to take over as CEO in April 2026.