British oil and gas company bp has reported underlying replacement cost (RC) profit of $1.5bn (£1.09bn) for the fourth quarter of 2025 (Q4 2025), a 32% decrease compared to $2.2bn in Q3 2025 and a 25% increase compared to $1.2bn for Q4 2024.
BP said profit fell compared with Q3 2025 due to lower upstream realisations and changes in its production mix. Refining results also weakened as turnaround activity reduced throughput and an outage at the Whiting refinery temporarily cut capacity.
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Additionally, bp said it has suspended its share buyback programme and reduced spending to support its balance sheet.
The company reported total revenues and other income of $47.7bn for Q4 2025, a 1% decrease compared to $48.1bn for the same period in 2024. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to $8.96bn in Q4 2025 from $8.41bn in Q4 2024, up by around 6.5%.
BP reported a loss of $3.4bn for the quarter, compared with a profit of $1.2bn in Q3 2025. The Q4 figure included an inventory holding loss of $700m after tax and adjusting items that reduced results by $4.3bn after tax, which bp excluded to calculate underlying RC profit.
BP interim CEO Carol Howle said: “2025 was a year of strong underlying financial results, strong operational performance and meaningful strategic progress. We have made progress against our four primary targets – growing cash flow and returns, reducing costs and strengthening the balance sheet – but know there is more work to be done, and we are clear on the urgency to deliver.
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By GlobalData“With a continued emphasis on capital discipline and returns, we are reducing capital expenditure for 2026 to the lower end of the guidance range, while continuing to drive down our cost base.”
For the full year 2025, bp reported underlying RC profit of $7.5bn, a 16% decrease compared to $8.9bn in 2024.
The company reported total revenues and other income of $192.5bn in 2025, a 1% decrease compared to $194.6bn in 2024. For 2025, bp reported adjusted EBITDA of $37.6m, a 1% decrease compared to $38m in 2024.
Howle added: “We are also taking decisive action to high-grade our portfolio and strengthen our company, including the execution of our $20bn disposal programme and the decision to suspend the share buyback and fully allocate excess cash to our balance sheet.
“These decisions position us to progress long-term value growth through the distinctive opportunity set we are creating in our upstream business, including the Bumerangue discovery in Brazil, where our initial estimates indicate around eight billion barrels of liquids in place.”
Looking ahead, bp expects reported upstream production in Q1 2026 to be broadly flat against Q4 2025. In its customers business, the company expects volumes to be lower on a seasonal basis versus the previous quarter.
For products, bp expects industry refining margins to be lower than in Q4, with a lower level of refinery turnaround activity partly offsetting the change.
