What's happened
BP has halted its share buyback program after reporting weaker 2025 profits, citing market conditions and debt concerns. The company plans to focus on oil and gas investments under new CEO Meg O’Neill, signaling a shift back to fossil fuels after previous green investments. Share prices fell 6% following the announcement.
What's behind the headline?
BP’s decision to suspend buybacks reflects a pragmatic response to market pressures and its weak balance sheet, with debt at $22bn. The focus on fossil fuel projects, including the Bumerangue discovery in Brazil, indicates a return to core operations. This shift suggests BP is betting on sustained oil demand despite global climate pressures. The new CEO’s emphasis on oil and gas investments signals a potential reversal of its green ambitions, aligning with shareholder demands for short-term returns. However, this strategy risks alienating environmentally conscious investors and increasing long-term exposure to declining fossil fuel markets. The market’s negative reaction—shares dropping 6%—underscores investor skepticism about BP’s long-term sustainability in a decarbonizing world.
What the papers say
The Guardian reports BP’s profit decline and suspension of buybacks, highlighting market concerns and strategic shifts. Jillian Ambrose notes BP’s return to fossil fuels and the focus on oil projects, contrasting with Shell’s continued buybacks despite market downturns. The New York Times emphasizes the global context, including rising oil prices due to geopolitical tensions, and BP’s focus on new oil discoveries like Bumerangue. Reuters adds that BP’s profits at its gas and low-carbon units exceeded expectations, but overall earnings were weaker, and the company’s renewed emphasis on hydrocarbons signals a clear strategic pivot. These sources collectively illustrate a broader industry trend of balancing short-term financial stability with long-term climate commitments, with BP’s move seen as a pragmatic, if controversial, step in a volatile market.
How we got here
BP's recent strategy reset marked a move away from renewables toward traditional oil and gas, aiming to boost profitability after a failed green energy push. The company’s profits declined in 2025 due to falling oil prices and write-downs in renewables. The upcoming leadership change with Meg O’Neill aims to steer a new strategic course.
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