BP Plc Halts Share Buybacks Amid Turnaround Pressures (BP: $750M Reduction)

BP Plc halts its $750 million quarterly share buyback program through the end of 2026, reducing a previously reduced plan and withdrawing guidance to return 30%–40% of operating cash flow to shareholders. The move follows a difficult 2025, including activist pressure, leadership changes, and a strategic pivot away from oil and gas. Oil prices are below $73 per barrel, down from $73 BP targeted for 2026. Upstream production is expected to be slightly lower than 2024, and BP will deepen cost reductions by up to $1.5 billion by 2027, including $6 billion from Castrol divestitures. Net income for the quarter was $1.54 billion, in line with estimates. BP recorded a $4 billion writedown in the fourth quarter and累计 impairments since 2022 of nearly $25 billion on renewable assets, including Archaea Energy and Lightsource, reflecting slower-than-expected low-carbon project performance.