10 February 2026
"Some of the key financial figures had already been flagged in January’s trading update, including the circa $4bn non-cash impairment relating to its renewables business Lightsource and its US biogas business Archaea.
Overall, results are broadly in line with expectations following that update, although profits are sequentially lower due to weaker oil prices. Capital expenditure guidance for 2026 has been reduced and cost-cutting efforts have been stepped up, which should help support cash flow. The dividend policy remains unchanged, with BP reiterating its intention to grow the dividend per share by around 4% per year.
More notably, BP has suspended its share buyback programme in order to protect the balance sheet. Under former CEO Murray Auchincloss’s “strategy reset” last April, buybacks had already been reduced from $1.75bn per quarter to $750m. The decision to cancel them entirely signals a more cautious stance and a clear focus on financial resilience.
While the move was not a complete surprise to the market, particularly after similar actions by other oil majors, some shorter-term investors may be disappointed, which helps explain the share price weakness seen today. However, prioritising balance sheet strength in a softer commodity price environment is a prudent step.
Looking ahead, the key to the BP investment case lies in further strategic refocusing under new Chair Albert Manifold and, from April, incoming CEO Meg O’Neill. Investors are likely to watch closely for additional strategic updates over the coming months as the company sets out its next phase."
