In brief
In its latest annual report, BP revealed a profit drop to $7.5 billion in 2025, down from $8.9 billion in the previous year, largely due to a 20% decline in crude oil prices. Additionally, BP is halting its share buyback program and targeting increased cost savings as it prepares for the arrival of new CEO Meg O'Neill in April. The results highlight ongoing pressures faced by BP and the broader oil industry.
BP has reported a drop in annual profits after the business was hit by the fall in oil prices last year.
The oil giant reported profits of $7.5bn (£5.5bn) in 2025, down from $8.9bn the year before, after the price of crude fell by about 20%.
BP also said it was suspending its share buyback programme and was increasing its target for cost savings.
The results come ahead of the arrival of its new boss, Meg O'Neill, who will take up the position in April, making her the first woman to lead a major global oil firm.
Carol Howle, BP's current interim chief executive, stated that the company looks forward to O'Neill's arrival as we accelerate our progress to build a simpler, stronger and more valuable BP for the future.
BP has faced shareholder pressure for underperformance compared to rivals in recent years. One year prior, BP announced a strategy change, cutting planned renewable energy investments to refocus on core oil and gas operations with an aim to reduce its debt, currently standing at about $22bn.
In announcing its latest results, BP indicated it aims for cost savings of $5.5bn-$6.5bn by the end of 2027, up from a prior target of up to $5bn. In the final quarter of the year, profits fell by 30% to $1.54bn, coinciding with Brent crude oil prices dropping below $60 a barrel.
Competitor Shell also reported decreased profits, with underlying earnings falling by 22% year-on-year. O'Neill steps into her role at a challenging time, following the resignation of previous CEO Murray Auchincloss after less than two years, who succeeded Bernard Looney, dismissed in 2023 due to misconduct.
