BP pauses buybacks to cut debt amid shift in investment strategy
Oil major redirects cash toward balance‑sheet repair and higher‑return energy projects.
BP has suspended its $750‑million quarterly share buyback program as it moves to reduce debt and reorient investment toward oil and gas projects expected to deliver stronger returns. The decision follows a series of charges totalling around $4 billion on the company’s renewables and biogas portfolio, prompting a strategic rethink ahead of incoming CEO Meg O’Neill’s arrival in April.
The company said the pause in buybacks will free up capital to accelerate balance‑sheet repair. BP has already trimmed net debt to $22 billion, down from $26 billion in the previous quarter, and reaffirmed its target of reducing the figure to between $14 billion and $18 billion by 2027.
According to Reuters, Finance Chief Kate Thomson noted that the company may update investors on the potential resumption of buybacks once debt goals are achieved, though hitting the target would not automatically trigger a restart.
BP reported fourth‑quarter net profit of $1.54 billion, up 32% compared with the previous year, supported by stronger oil trading results. The company also highlighted long‑term potential at its Bumerangue field, which is expected to hold around 8 billion barrels.
While BP’s shares fell about 7% in afternoon trading following the announcement, the company emphasised that the change reflects a shift in capital discipline rather than weakening operational performance.
The pause marks the latest phase in BP’s strategic reset, which began a year ago when the company pivoted back toward hydrocarbons under then‑CEO Murray Auchincloss after scaling back an earlier push into renewables.
