BP's annual profit plunges again, weighed down by falling oil prices and write-downs.

The group saw its net profit plummet by 86% year-on-year in 2025, to $55 million, after already falling sharply a year earlier, severely testing the patience of investors.

In the midst of an internal revolution after largely backtracking on an ambitious climate strategy, the group explained in a statement on Tuesday that it had suffered write-downs "of about $4 billion mainly related to (its) transition activities in the gas and low-carbon energy segment".

Last year he presented a recovery plan involving a radical refocusing on hydrocarbons and a reduction in costs, with the elimination of thousands of jobs.

He also announced in December the appointment of a new CEO, American Meg O'Neill, a former ExxonMobil executive, to replace Murray Auchincloss. She will take office on April 1st.

The group specified on Tuesday that its underlying annual profit (excluding exceptional items), closely watched by the markets, also declined, but to a lesser extent, by 16% to $7,5 billion.

But for the fourth quarter alone, the group posted a net loss of $3,4 billion, which widened by 75% year-on-year.

Share buybacks suspended

These results reflect in particular the fact that oil prices plummeted last year by almost 20%, weighed down mainly by an increase in production from OPEC countries and concerns about the global economy linked to Donald Trump's tariffs.

BP indicated on Tuesday that it had increased its target for reducing its structural costs and announced it was "suspending share buybacks" to strengthen its balance sheet.

Despite the drop in profit, these results show "relative resilience in a context of low prices", says Derren Nathan, analyst at Hargreaves Lansdown, pointing to a decline in the group's debt and "decisive measures to clean up the balance sheet".

"To clear the slate before the arrival of the new CEO (...) BP also wrote down its underperforming solar and renewable natural gas businesses," which "could pave the way for more sustainable distributions to shareholders in the long term."

But the cancellation of share buybacks displeased investors and weighed heavily on BP's share price on the London Stock Exchange on Tuesday. It fell by around 5% in the morning.

"Double-edged sword"

"Abandoning share buybacks may make sense, but it's a double-edged sword, as it has removed shareholders' reason to be patient with BP's recovery," notes Dan Coatsworth, analyst at AJ Bell.

The new boss "will face difficult decisions as soon as she takes office in April, given the pressure to return BP to significant growth while reducing debt," he warns.

As part of its recovery plan, BP also announced last year some $20 billion in asset sales by 2027.

The group has already completed or announced divestments amounting to "more than $11 billion - more than half of the target", it argued on Tuesday.

The company notably announced in December the sale of 65% of the shares of its engine lubricants subsidiary Castrol to the American investment fund Stonepeak, an operation whose net proceeds it estimates at $6 billion, which will be used to reduce its debt.

BP's British competitor, Shell, last week reported a net profit up 11% in 2025 to $17,838 billion, despite the fall in oil prices, which was offset by sales volume and a decrease in its costs.