U.K.-based energy major BP reported a profit of $7.5 billion for 2025, underscoring resilient core earnings from fossil fuels despite softer crude prices and heavy impairments in its low-carbon portfolio. Fourth-quarter underlying profit reached $1.5 billion. However, reported results showed a $3.4 billion loss attributable to shareholders in the final quarter, driven largely by roughly $4 billion in post-tax write-downs tied to offshore wind and transition assets, including Archaea and Lightsource bp.
The company is progressing with the sale of a 65% stake in its lubricant subsidiary, Castrol, to investment vehicle Stonepeak. The transaction is expected to close by the end of 2026 and generate about $6 billion, earmarked to pay down debt.
Operationally, BP generated $24.5 billion in cash flow during the year. The lubricants segment, led by Castrol, delivered more than 15% earnings growth, marking its strongest performance since 2019.
Interim Chief Executive Carol Howle said further balance sheet strengthening remains essential. Share buybacks have been suspended, with surplus cash directed toward reducing net debt, which stood at $22.2 billion at year-end.
BP is also shedding renewable energy assets, including U.S. onshore wind operations and Dutch retail businesses. These moves align with BP’s February 2025 strategic reset toward a capital-light model focused on higher-return oil and gas investments. As part of that pivot, BP is pursuing a strategic partner for Lightsource bp, despite having completed full ownership only months earlier. The approach signals a preference for shared capital commitments rather than sole funding of renewable expansion, as the company seeks to balance transition ambitions with financial discipline. Archaea Energy, a renewable natural gas business BP acquired, and Lightsource bp, a solar energy developer in which BP holds a majority stake, are part of BP’s low-carbon energy transition portfolio.
Fourth-quarter core profit of $1.5 billion suggests a slowdown at year-end, contrasting with the reported $3.4 billion loss, which largely reflects accounting adjustments and likely lower expected returns, higher costs or weaker market conditions in renewables.