London, Feb 11, 2026, 07:57 GMT — Premarket
BP shares (BP.L) resumed trading after closing Tuesday at 448.35 pence, down 6.13%. Investors reacted to the company’s move to pause share buybacks. (Hargreaves Lansdown)
The selloff puts BP’s cash-return story to the test, coming as oil prices dip from last year’s peaks and investors grow less tolerant of major shifts. Tuesday’s trading will reveal if the market sees this as a one-time adjustment or the beginning of a sustained downgrade.
Buybacks matter because they represent a straightforward way to return money: companies repurchase their shares, reduce the share count, and usually boost earnings per share. When buybacks disappear, the focus shifts to balance-sheet repair and future cash flow — which can be tougher to justify during a market downturn.
BP announced it would halt its quarterly share buybacks, choosing instead to channel that money into paying down debt and investing in oil and gas after writing off roughly $4 billion in renewables and biogas. The company said net debt dropped to $22 billion from $26 billion and reaffirmed its $14 billion-$18 billion target for 2027. However, it abandoned its previous commitment to return 30%-40% of operating cash flow via dividends and buybacks, unsettling investors focused on yield. BP’s fourth-quarter underlying replacement cost profit — its favored metric excluding one-offs — came in at $1.54 billion. Finance chief Kate Thomson admitted on the call, “I really don’t like taking impairments.” (Reuters)
Oil provided early support to the sector Wednesday, with Brent rising 57 cents to $69.37 a barrel as traders kept an eye on U.S.-Iran tensions and hints of stronger demand. Still, BP remains vulnerable—any drop in crude prices tends to hit earnings and cash flow at integrated oil companies quickly. (Reuters)
Hargreaves Lansdown’s Derren Nathan noted that BP is taking “firm action” to strengthen its balance sheet amid falling prices, highlighting a net debt of $22.2 billion and a capital spending plan of $13 billion to $13.5 billion for 2026. BP also expects to sell assets worth $9 billion to $10 billion and maintain roughly flat production by 2026, Nathan wrote. (Hargreaves Lansdown)
Maurizio Carulli, global energy analyst at Quilter Cheviot, described the buyback pause as “a prudent step” given the softer commodity-price environment. He noted investors will be watching for strategic updates as the new leadership team settles in. Carulli also pointed out that buybacks had already been scaled back last year before this latest halt. (Quilter)
However, there’s a catch. If oil prices remain low or expenses rise, BP’s effort to cut debt could drag out, delaying share buybacks and widening the dividend gap with competitors actively returning cash to shareholders.
Traders will be keeping a close eye on BP’s performance once the London market opens on Wednesday, watching to see if the focus shifts from “cut returns” to “cut risk.” The key date coming up is the dividend schedule: BP announced an interim dividend of 8.320 cents per share. The ex-dividend date for ordinary shareholders is set for Feb. 19, with payments expected on March 27. (Tradingview)
