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.
These results come ahead of the arrival of its new boss, Meg O'Neill, who will take up the position in April. O'Neill, who was head of Australian oil and gas firm Woodside Energy, will be the first woman to run a major global oil firm. Carol Howle, BP's current interim chief executive, stated that the company looked 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 pressure from its shareholders for underperforming compared to rivals in recent years. A year ago, the company announced a strategic shift, cutting planned investments in renewable energy to focus more on its core oil and gas operations.
The energy giant is aiming to cut its debts, which currently stand at about $22bn. BP has set a goal to achieve cost savings of $5.5bn-$6.5bn by the end of 2027, a revision up from their previous target of up to $5bn.
In the final quarter of 2025, profits fell 30% to $1.54bn, coinciding with Brent crude oil prices dropping below $60 a barrel for the first time in over four years. This decline mirrors trends seen at rival oil giant Shell, which recently reported a 22% fall in profits as well.
O'Neill's leadership follows a turbulent period marked by the resignation of Murray Auchincloss after under two years in the role, who himself succeeded Bernard Looney after he was dismissed in 2023 due to undisclosed personal conduct issues.
These results come ahead of the arrival of its new boss, Meg O'Neill, who will take up the position in April. O'Neill, who was head of Australian oil and gas firm Woodside Energy, will be the first woman to run a major global oil firm. Carol Howle, BP's current interim chief executive, stated that the company looked 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 pressure from its shareholders for underperforming compared to rivals in recent years. A year ago, the company announced a strategic shift, cutting planned investments in renewable energy to focus more on its core oil and gas operations.
The energy giant is aiming to cut its debts, which currently stand at about $22bn. BP has set a goal to achieve cost savings of $5.5bn-$6.5bn by the end of 2027, a revision up from their previous target of up to $5bn.
In the final quarter of 2025, profits fell 30% to $1.54bn, coinciding with Brent crude oil prices dropping below $60 a barrel for the first time in over four years. This decline mirrors trends seen at rival oil giant Shell, which recently reported a 22% fall in profits as well.
O'Neill's leadership follows a turbulent period marked by the resignation of Murray Auchincloss after under two years in the role, who himself succeeded Bernard Looney after he was dismissed in 2023 due to undisclosed personal conduct issues.
