BP today halted share buybacks and reported a big fall in profits during a weaker session for the FTSE 100 index.
The oil giant’s decision to retire guidance for shareholder distributions meant its shares featured among the biggest fallers.
Barclays results got a better response, while it emerged the bank’s CEO got a £15 million pay deal for 2025.
FTSE 100 Live Tuesday
- BP halts buybacks
- Barclays CEO gets £15m
- AstraZeneca earnings rise
Market update: BP shares fall in weaker FTSE 100, AstraZeneca rallies
10:23 , Graeme EvansA sharp reverse for BP shares today contrasted with the progress of Barclays and AstraZeneca as investors digested a heavyweight session of FTSE 100 results.
London’s top flight slipped 34.97 points to 10,351.26, despite Monday’s strong session on Wall Street and the reassurance of the Astra and Barclays results.
BP weighed on the performance after it scrapped its guidance for shareholder distributions worth 30-40% of operating cash flow.
The withdrawal of the share buyback programme, which had been running at a rate of $750 million a quarter, will enable BP to focus on bolstering its balance sheet.
The group, which recently announced that Meg O’Neill will take over as chief executive from April, ended 2025 with net debt of $22.18 billion.
Weaker energy prices meant BP reported a lower fourth quarter profit of $1.5 billion, down from the previous quarter’s $2.2 billion but in line with expectations.
A fourth quarter dividend of 8.320 US cents a share is up 4% on a year earlier and unchanged on the previous quarter.
BP shares fell 5% or 25.1p to 452.5p, although they remain higher year to date.
Barclays has re-rated over the past year, with the mood in the City still positive after the bank unveiled new targets alongside strong fourth quarter results.
Changes to 2026 guidance included an increase in the dividend outlay to £2 billion, up from 2025’s £1.2 billion. This implies a total of 15p a share for 2026, well above the City consensus of 10p.
Barclays shares traded higher for much of the session before settling 4p lower at 482.4p.
Dan Coatsworth, head of markets at AJ Bell, said: “There wasn’t enough to blow the lights out in terms of recent performance, and so much good news is already in the price.
“The banking sector has been a major money maker for investors over the past two years and now needs powerful catalysts to sustain the upwards share price momentum.
“That means large upgrades to earnings forecasts, otherwise the shares could stall.”
Other stocks in the sector came under pressure as Lloyds Banking Group fell 3% or 2.75p to 102.5p and NatWest dropped 17.3p to 602.7p.
Meanwhile, AstraZeneca results helped its shares consolidate their 40% advance since April.
Today’s results for 2025 showed an 8% increase in total revenues to $58.7 billion, with earnings per share up 11% to $9.16.
Chief executive Pascal Soriot said the company delivered a strong commercial performance across its therapy areas.
Guidance for 2026 includes a mid-to-high single digit percentage increase in total revenues and low double-digit percentage rise in core earnings per share.
Barclays profit beats hopes, targets big dividend increase
09:40 , Graeme EvansBarclays shares are up 1.5% or 7.45p to 494p after the banking group’s fourth quarter profit figure of £1.86 billion came in 8% ahead of the City consensus.
Analysts at Jefferies said the most notable change to 2026 guidance concerned the dividend, which is set to increase to a total of £2 billion from 2025’s £1.2 billion.
This implies a total of 15p a share for 2026, up from the City consensus of 10p.
Shore Capital said shares have already re-rated significantly but that the current valuation multiple left scope for further modest expansion if the group can deliver on its medium-term return on tangible equity ambition of more than 14%.
Shore currently has a Buy recommendation, regarding Barclays as its favoured play amongst the UK large cap banks.
BP taking “decisive action” to fix balance sheet
09:02 , Graeme EvansBP’s fourth-quarter results showed “relative resilience ” in a weak pricing environment, according to Hargreaves Lansdown analyst Derren Nathan.
Underlying replacement cost profit dropped 16% to $1.5 billion, which was in line with forecasts. Net debt fell after a spike in the third quarter, but on a 12-month view was only slightly lower at $22.18 billion.
Nathan said: “Management is taking some decisive action to fix the balance sheet, scrapping the buyback, doubling down on non-core disposals and upping structural cost savings targets to $5.5-6.5 billion by the end of next year.”
Ahead of the arrival of new CEO Meg O’Neill in April, BP also wrote down the value of its solar and renewable natural gas businesses by around $4 billion.
Nathan added: “This leaner meaner approach could pave the way for more sustainable payouts to shareholders further down the line, but with investment spend coming down, investors will want some assurance on BP’s plans to remain an energy leader over the long-term.”
Barclays CEO rewarded with £15m pay deal
08:40 , Graeme EvansThe boss of Barclays was rewarded with a 29% surge in his pay and bonus package to just over £15 million last year, the bank’s annual report showed today.
Chief executive C.S. Venkatakrishnan’s total for 2025 was 248 times more than the median paid to workers at Barclays, up from 201 times in 2024.
It is thought to be the biggest pay package for a Barclays CEO since the £17 million awarded to Bob Diamond in 2011.
The sharp increase in the headline remuneration figure was largely due to long term performance related share awards maturing in 2025 at a huge profit.
BP shares down 4% amid buyback halt, Barclays and Astra steady
08:13 , Graeme EvansThe FTSE 100 index today stood 11.83 points lower at 10,374.40 after three of the London market’s biggest stocks posted annual results.
BP shares fell 4% or 17.9p to 459.8p after the oil giant ditched guidance for shareholder distributions worth 30-40% of operating cash flow.
Barclays consolidated recent gains with a rise of 0.9p to 487.45p, having unveiled new three-year targets alongside better-than-expected fourth quarter results.
AstraZeneca rose 78p to 13,966p following the release of its results.
AstraZeneca earnings up 11%, eyes double-digit rise in 2026
07:40 , Graeme EvansAstraZeneca today said its targets for 2026 included a mid-to-high single digit percentage increase in total revenues.
It is also expecting a low double-digit percentage rise in core earnings per share.
The company delivered the guidance as results for 2025 showed an 8% increase in total revenues to $58.7 billion, with earnings per share up 11% to $9.16.
Chief executive Pascal Soriot said the company delivered a strong commercial performance across its therapy areas.
He added that Astra is looking forward to the results of more than 20 late-stage phase three trial readouts this year.
Soriot said: “We have more than 100 Phase 3 studies ongoing, including a substantial and growing number of trials of our transformative technologies which have the potential to revolutionise outcomes for patients and drive our growth well beyond 2030.”
BP halts buybacks as profits fall
07:17 , Graeme EvansBP today put its £750 million a quarter share buyback programme on hold.
The oil group said it would use excess cash to accelerate the strengthening of its balance sheet.
BP said: “This creates a strong platform to invest with discipline into our distinctive deep hopper of oil and gas opportunities.”
The group, which recently announced that Meg O’Neill will take over as chief executive from April, ended 2025 with net debt of $22.18 billion.
Weaker oil prices today meant BP reported a lower fourth quarter profit of $1.5 billion, down from the previous quarter’s $2.2 billion.
The underlying replacement cost profit total for 2025 fell to $7.48 billion from $8.9 billion a year earlier. For the fourth quarter, BP announced a dividend of 8.320 US cents a share - up 4% on a year earlier and unchanged on the third quarter.
Interim chief executive Carol Howle said: "2025 was a year of strong underlying financial results, strong operational performance, and meaningful strategic progress.
“We have made progress against our four primary targets - growing cash flow and returns, reducing costs, and strengthening the balance sheet - but know there is more work to be done, and we are clear on the urgency to deliver.”
Shell recently announced an unchanged quarterly buy back plan worth $3.5 billion.
Barclays profit up 13% in 2025, unveils new targets
07:11 , Graeme EvansBanking giant Barclays today unveiled new financial targets alongside better-than-expected results for 2025.
It reported a 13% increase in annual pre-tax profits to £9.1 billion, with the surplus for the final quarter up 12% to £1.86 billion, The City had expected figures in the region of £9 billion and £1.7 billion respectively.
Barclays said it aimed to deliver sustainably higher returns through to 2028 and beyond, including return on tangible equity of more than 14% in 2028. This compares with 11.3% in today’s results.
It is also planning at least £15 billion of capital distributions to shareholders between 2026 and 2028.
The bank announced total capital distributions of £3.7 billion for 2025, which is 23% higher than 2024.
This includes a £1.2 billion total dividend of 8.6p a share, up 2% on a year earlier and including plans for a full-year award of 5.6p. The bank intends to initiate a further share buyback of £1 billion.
Retail sales show new year improvement - BRC
07:00 , Graeme EvansThe British Retail Consortium today said UK retail sales increased by 2.7% year-on-year in January, above the 12-month average of 2.3%
BRC chief executive Helen Dickinson said: “A drab December gave way to a brighter January as retail sales picked up pace.
“Many shoppers had held off Christmas spending and waited for the January sales, with the start of the new year showing the strongest growth.
“And bargain hunting was not limited to online, with in-store sales showing the highest growth in over six months.”
Wall Street tech giants rally, Nikkei 225 strong run continues
06:59 , Graeme EvansThe recovery of Wall Street tech stocks continued last night as the Nasdaq Composite closed 0.9% higher and the S&P 500 index rose 0.5%.
Among individual stocks, Nvidia lifted 2.5% and Microsoft advanced 3%.
The FTSE 100 index yesterday rose 0.2% or 16.48 points at 10,386.23, led by miners Antofagasta and Fresnillo. NatWest fell 6% due to its plan to pause share buybacks.
London’s top flight is seen opening broadly flat this morning.
In Asia, the strong performance of the Nikkei 225 following Sunday’s decisive election result continued with a further rise of 2.3%.
The pound has steadied after yesterday’s weaker performance to stand at $1.37. Brent Crude futures are at $69 a barrel, while Bitcoin is just below $70,000 and gold at $5035 an ounce.
