The British energy company, bp, stated that its replacement cost (RC) profit dropped to $1.5 billion in the fourth quarter (Q4) 2025, from $2.2 billion in the previous quarter. RC profit is a measure commonly used by oil and gas companies, especially refiners, to show underlying profitability by excluding the impact of inventory price fluctuations.
The company said that the result was impacted by weaker upstream price realizations, an unfavorable production mix, and reduced refinery throughput due to increased maintenance activity and temporary capacity constraints following an outage at the Whiting refinery. Seasonally lower customer volumes also weighed on performance. These effects were partly offset by a decline in exploration write-offs.
According to the results, bp reported a loss for Q4 2025 worth $3.4 billion, compared with a profit of $1.2 billion for the third quarter of 2025. Regarding the results of the segments, the company’s gas and low carbon energy RC loss before interest and tax was $2.2 billion in Q4 2025, compared with a profit of $1.1 billion for the previous quarter.
Additionally, the RC profit before interest and tax of the oil production and operations segment reached $1.7 billion, compared with $2.1 billion for Q3 2025.
Also, the results showed that bp’s operating cash flow amounted to $7.6 billion in the quarter, lower than the previous quarter by $0.2 billion.
The company elaborated that the board has opted to halt share repurchases and direct surplus cash toward reinforcing the company’s balance sheet. As a result, it has withdrawn its previous guidance to distribute around 30–40% of its operating cash flow to shareholders.
bP, formerly known as British Petroleum, is one of the world’s largest integrated energy companies. It operates across the entire energy value chain, including oil and gas exploration and production (upstream), refining and marketing (downstream), and trading.
