BP Cancels £549m Share Buyback Amid Oil Price Drop and Leadership Shakeout (BP: 3.5% Fall)

BP has cancelled its £549 million ($750 million) share buyback programme, scrapping the payout amid a sharp decline in oil prices and leadership changes. The FTSE 100 company, which relies on dividends to fund pensions, will also reduce capital expenditure in 2026 and cut billions in costs, citing continued weakness in oil prices. The Brent crude price fell from about $76 to $69 per barrel, pressuring results. BP posted a $3.4 billion loss for Q4 2025 versus a $1.2 billion profit in Q3 2025, with underlying replacement costs profit down 16% in the quarter and falling from $8.9 billion to $7.5 billion year-on-year. The oil major recorded a $4 billion impairment in its low-carbon energy division and scrapped its hydrogen plant on Teesside following a strategy review. Following the abrupt departure of CEO Murray Auchincloss, Albert Manifold hired Meg O’Neill of Woodside Energy as interim replacement, with a renewed focus on oil and gas and asset sales. The decision comes amid a 3.5% drop in BP shares in early trading.