BP’s Q4 profit falls sharply

BP reported a sharp drop in fourth-quarter profit on Tuesday, confirming its intention to “reset” its strategy radically in light of the challenges facing the energy sector.

The company recorded its core profit on a replacement cost basis – a measure used as a proxy for net profit – at $1.169 billion during the fourth quarter, compared to $2.99 ​​billion in the same period last year, and slightly less than expectations of $1.2 billion according to a poll conducted by LSEG.

BP’s net debt rose to nearly $23 billion in the fourth quarter, up 10% year-on-year, while capital spending fell to $3.7 billion in the October-December period, compared with $4.7 billion in the fourth quarter of 2024.

BP is “reshaping” its portfolio, with “strong progress” in cutting costs, Chief Executive Murray Auchincloss said in an accompanying statement, indicating plans for a deeper restructuring in the future.

“We now intend to fundamentally recalibrate our strategy and drive further performance improvements, all in the service of increasing cash flow and returns. This will be a new direction for BP,” he added.