2026년 2월 11일 · Unknown · financial · 출처 Yahoo Finance
This article first appeared on GuruFocus.
BP Plc (NYSE:BP) is moving to pause share buybacks as management shifts its focus toward balance-sheet repair, a decision that comes as pressure continues to build around the company's turnaround efforts. In its latest earnings report, BP said it has cut its $750 million quarterly repurchase program, which had already been reduced last year, and withdrawn its guidance to return 30% to 40% of operating cash flow to shareholders. The company also signaled that 2026 spending is likely to sit at the low end of its previous forecast, a change that follows a volatile year marked by activist pressure from Elliott Investment Management and a leadership transition that will see Meg O'Neill take over as chief executive in April.
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Despite the savings implied by halting buybacks and an ongoing push to sell lower-returning assets, BP kept its net debt target unchanged at $14 billion to $18 billion by the end of 2027. Net debt stood at about $22.2 billion at the end of last year, excluding hybrid bonds and lease obligations, and the market reaction was negative, with BP shares falling as much as 5.7% in early London trading. Management indicated that any future decision on restarting buybacks will be left to O'Neill, even as major peers such as Chevron and Exxon have signaled that current shareholder return levels will be maintained, while Shell has so far kept its quarterly repurchase program unchanged.
Strategically, BP continues to emphasize its refocus on core oil and gas, while outlining deeper cost-cutting plans that could extend by as much as $1.5 billion through the end of 2027, including the divestment of its Castrol lubricant business. The company highlighted its Bumerangue discovery in Brazil, which it estimates holds 8 billion barrels of liquids in place, with appraisal work expected to begin around the end of this year. At the same time, BP detailed $4 billion of writedowns tied to its energy transition assets in the fourth quarter, maintained its Brent price assumption of $72.9 a barrel for this year, and reported quarterly net income broadly in line with expectations, suggesting that rebuilding confidence in capital allocation could be a central theme for investors going forward.
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