Why has BP suspended its share buyback program and what is its current financial priority?

BP has suspended its share buyback program to prioritize balance-sheet repair, specifically paying down debt and reducing perpetual hybrid bonds, as stated by CFO Kate Thomson: 'We’re completely focused right now on delivering a stronger balance sheet.' The company suspended buybacks in February to 'clear the decks' for new CEO Meg O’Neill, who assumed leadership on April 1, and has abandoned its former policy of returning 30% to 40% of operating cash flow to shareholders—leaving it the only oil supermajor without a formal shareholder distribution framework.

What impact did energy market turmoil—including the Iran war—have on BP’s first-quarter financials and liquidity position?

Energy market turmoil driven by the Iran war contributed to a more than doubling of BP’s adjusted net income in the first quarter year-on-year, largely due to an exceptional performance from its in-house oil trading operation; however, net debt rose 14% to $25.3 billion during the quarter because the same turmoil caused BP to tie up cash in inventories and longer shipping routes.

BP Prioritizes Balance Sheet Repair Over Shareholder Payouts

Apr 28, 2026

BP executives prioritize balance sheet repair over share repurchases despite soaring profits driven by oil trading and market turmoil. The company plans to pay down debt and reduce hybrid bonds, suspending its formal shareholder distribution framework.

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