Dan Coatsworth, head of markets at AJ Bell, said: “One tough decision has been taken out of the hands of incoming BP chief executive Meg O’Neill as BP has put share buybacks on hold and scaled back spending in the face of weaker energy prices.
“The decision is at odds with Shell which is ploughing ahead with its own buyback.
“Balance sheet pressures at BP are more acute and, while the buyback suspension was not exactly unexpected, the fact barely a dent was made in the company’s debt pile over the last 12 months is a bigger concern.
“Oil prices have advanced in recent weeks thanks to ongoing tensions in Iran but there are expectations they might fall again as we move through 2026 should more supply come onto the market.
“BP has emphasised the need to invest in its oil production business as it continues to turn tail on its big push into green energy.
“Dialling back returns to shareholders may give the new boss scope to pursue this goal.
“O’Neill faces tough decisions as soon as she takes office in April, given the pressure to return BP to meaningful growth while also reducing debt.
“Ditching the buyback may be logical but is a double-edged sword as it has given shareholders one less reason to be patient with a BP turnaround.”
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