London, Feb 10, 2026, 08:25 GMT — Regular session
BP PLC (BP.L) dropped 3.1% to 462.6 pence at the open in London after the company hit pause on share buybacks and posted fresh results. 1
Why does the buyback matter? For BP, it’s been a straightforward method to return cash to shareholders. Halting that, even short-term, puts the spotlight on shoring up the balance sheet—and raises questions about what’s available for dividends and growth outlays.
BP announced roughly $4 billion in write-downs tied to its renewables and biogas divisions and hit pause on its share buyback program, having already finished $750 million in buybacks over the last quarter. The company added it plans to steer surplus cash toward oil and gas projects. 2
BP posted an underlying replacement cost profit of $1.54 billion for the fourth quarter in its results statement, with an 8.32 cent dividend per ordinary share on deck. The board plans to use surplus cash to bolster the balance sheet, pegged 2026 capital spending between $13 billion and $13.5 billion, and dropped previous guidance that aimed for shareholder distributions at about 30% to 40% of operating cash flow. “We are in action and we can and will do better for our shareholders,” interim CEO Carol Howle said. 3
BP leans on underlying replacement cost profit as its go-to profit measure. By stripping out one-off items and inventory accounting quirks, the metric offers investors what the company sees as a clearer snapshot of the quarter than the statutory profit figure.
Oil eased a bit Tuesday, with Brent crude slipping 18 cents to $68.85 a barrel as of 0353 GMT. “Uncertainty has kept a modest risk premium intact,” IG analyst Tony Sycamore said. The sector remains pegged to price moves. 4
BP shares slid, turning attention toward capital returns instead of the usual production headlines. Putting buybacks on ice might help shore up credit metrics, but it also takes away a steady source of demand for the stock—just as investors have little patience for unexpected moves.
Accounting plays its part, too. A write-down doesn’t pull cash from the business outright, yet it signals to the market that certain low-carbon bets aren’t shaping up as management once hoped.
Bulls face their own set of risks. Should crude prices remain soft, or if asset sales drag out, BP could end up with less wiggle room on spending and shareholder returns compared to rivals—even with a stricter capex strategy in place.
Now traders have their eyes on three things: a debt load that needs to shrink, word on when buybacks might get the green light again, and if the company’s “oil and gas opportunities” story will actually show up in earnings when prices get shaky.
The spotlight shifts to BP’s incoming chief, Meg O’Neill, who’s set to step in as CEO on April 1. Investors are expected to scrutinize her opening moves, gauging just how firm the company’s new focus on cash discipline will prove to be in practice. 5
