BP, the British energy giant, said Tuesday that it would suspend share buybacks, which it has used in recent years to spur investor interest.
The company’s rivals, including Chevron, Exxon Mobil and Shell, have continued their buyback programs even as lower oil prices putting a dent in their earnings.
Despite worries about an oversupply of oil, tensions between the United States and Iran as well as very cold weather in America have helped push prices for Brent crude, the international benchmark, to nearly $70 a barrel, up from around $60 at the end of last year, when oil companies closed their books for the fourth quarter.
BP said that it would use the money saved to bolster its finances and invest in new oil and gas opportunities, including a large oil discovery off Brazil called Bumerange.
After being burned by its rapid shift into renewable energy, BP is turning back to its traditional oil and gas business in an effort to revive itself. It is hoping to convince investors that with oil demand expected to continue for years, it makes sense to put capital into drilling.
“We’re accelerating the turnaround,” said Carol Howie, who is serving as interim chief executive until the arrival in April of Meg O’Neill, who was named in December to replace Murray Auchincloss.
Ms. O’Neill, a former Exxon Mobil executive, who most recently headed Australia’s Woodside Energy, will be the company’s third chief executive in less than three years.
BP reported a $3.4 billion loss for the fourth quarter of 2025. It said it was writing off more than $4 billion in various renewable businesses, including Lightsource bp, a solar energy developer; Archaea, a renewable gas producer in the United States; and offshore wind.
BP also said it would increase its dividend by 4 percent. The company’s shares fell about 5 percent in early trading on Tuesday in London.
In an interview on Tuesday, Ms. Howie emphasized BP’s traditional oil and gas activities that, analysts say, were neglected in recent years. The discovery in Brazil was “the size of London,” she said, adding that it was part of “the richest set of opportunities we’ve had in BP in many, many years.”
Analysts say the discovery, which BP estimated held 8 billion barrels, could be a bright spot in efforts to turn BP around.
“The potential that Brazil looks to hold can mark a significant change in fortunes,” Alastair Syme, an analyst at Citigroup, wrote in a note to clients.
Despite the risk of alienating investors, stopping the buybacks “makes sense alongside new management coming in” wrote Biraj Borkhataria, an analyst at RBC Capital Markets, an investment bank, wrote in a note to clients Tuesday.
On the other hand, Mr. Borkhataria said that BP would now be offering “materially lower” payouts to shareholders than its competitors.
BP is taking a different approach from its rival Shell, which on Thursday said it would keep its share buybacks steady at $3.5 billion as well as increasing its dividend 4 percent.
Stanley Reed reports on energy, the environment and the Middle East for The Times from London. He has been a journalist for more than four decades.
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