BP suspended its $750 million quarterly share buyback programme, redirecting the funds to reduce debt and invest in oil and gas projects. The move sent the company’s shares down as much as 5.7% in early trading.

The decision comes as BP prepares for the arrival of new chief executive Meg O’Neill in April and follows a broader industry trend of trimming buybacks amid falling oil prices. Analysts noted that the pause reflects a shift back to hydrocarbons after a period of low‑carbon investment.

BP’s fourth‑quarter underlying replacement cost profit rose 32% to $1.54 billion, while net debt fell to $22 billion from $26 billion in the previous quarter. The company reiterated a target of $14 billion–$18 billion in debt by 2027. In addition, BP took $4 billion of charges on its renewables and biogas assets, including the $4.1 billion acquisition of Archaea and its solar unit Lightsource bp.

The Bumerangue discovery in Brazil, BP’s largest hydrocarbon find in 25 years, is estimated to contain 8 billion barrels of liquids, with Citi analysts estimating that 25%–40% of the resources could be tapped. BP plans to drill appraisal wells by year‑end to assess the field’s commercial potential.

Finance chief Kate Thomson said, "I really don’t like taking impairments. I’m very aware that this is our shareholders’ capital, but these are the accounting consequences of the discipline that we are putting into our company." She added, "We’ve tightened very hard the number of plants we’re moving forward." Analysts at Berenberg, RBC and Barclays welcomed the debt‑cutting strategy, noting that the market’s negative reaction may be short‑lived.

With the buyback pause, BP is positioning itself to capture upside in a recovering oil market while maintaining a disciplined balance sheet. The company’s focus on high‑return hydrocarbons and the potential of Bumerangue could drive future earnings growth as global demand stabilises.