As we close out 2025, let’s look back at what’s been an eventful year for bp and what it’s meant for your finances.
The company
Share price journey
bp shares opened 2025 around 400p, peaked at 476p in November, and are currently trading around 445p. A gain of approximately 11% across the year. After several challenging years post-pandemic, this represents a solid recovery.
Dividend payments
bp maintained its commitment to dividend growth, delivering on its promise of at least 4% annual increases. For Q3 2025, the dividend was 6.24p per share, up from 6.00p in Q3 2024. The current forward yield sits around 5.4%, one of the highest among major oil companies.
Strategic reset
In February, bp announced “reset bp”, a significant strategic shift that increased oil and gas investment to around £10bn per year through 2027, while scaling back renewables and low-carbon spending. Whilst controversial in some eyes, the market’s positive response was clear in the share price performance.
Shareholder returns
bp launched multiple share buyback programmes throughout the year, including a $750m programme in November. Combined with dividends, the total shareholder yield has been running at around 11%. A compelling proposition in today’s market.
Organisational change
It hasn’t all been plain sailing. The year has seen significant planned redundancies and substantial changes at all levels at bp. From our conversations with many of you, the human impact is clear to see. There’s been considerable uncertainty across the organisation as bp continues to reshape itself for the future.
Your money
Reinvent share options
The Reinvent bp share option has a strike price of £3.15. With bp’s 52-week low sitting at £3.29, your options have been in the money for every single trading day since 11 March 2025. That’s 283 days.
We know many of you have already taken advantage of this option. If you’re still holding options and haven’t made a plan for when to exercise, think this through.
Share plan milestones
Looking ahead to the end of the month, 31 December marks an important date for some with ISVP and GSVP awards that were granted in 2023. A big tranche becomes unrestricted on this date, so keep an eye out in your EquatePlus login.
Q1 will also have other shares becoming unrestricted, so keeping your pooled cost calculation updated and having a plan for disposing of your shares comes into sharp focus.
Bonus season
Q1 2026 brings the annual bonus season. Now’s the time to start thinking about what you’ll do with your bonus, whether that’s maximising pension contributions, topping up ISAs, or tackling any outstanding financial goals.
The planning landscape
Interest rates
After a period of stability, interest rates are widely expected to be reduced this month or next, though we’re not in the business of speculation. What we do know is that any rate cuts will impact everything from mortgage rates to savings accounts and pension transfer calculations.
Tax freeze continues
The government has maintained its freeze on tax thresholds, meaning more people are being dragged into higher tax brackets through wage growth alone. Combined with unchanged ISA and pension allowances, this reinforces the importance of tax-efficient planning.
Oil prices
Brent crude has averaged around £63 per barrel through much of 2025, down from previous highs but still profitable territory for bp. Expectations for 2026 vary widely among analysts, with forecasts ranging from £52 to £70 per barrel.
Our first bp webinar
Which brings us to an exciting announcement. On Thursday 19 February at 12.30pm, we’re launching our first ever bp webinar. This session is aimed at bp employees who want to make smarter choices with their money and create a financial plan that helps them live a better life.
We’ll be covering the practical decisions and opportunities that matter most to bp employees:
- Making the most of your bp benefits package
- Understanding your pension options and what makes sense for you
- Tax-efficient strategies for bonuses and share awards
- Building a financial plan that actually helps you live the life you want
We’ll focus on practical, bp-specific guidance to help you navigate these choices with clarity and confidence. More details and registration will follow in the new year.
The year that was
2025 has been a year of strategic clarity for bp and positive returns for shareholders. With the Reinvent options having been firmly in the money throughout the year, significant organisational change, and the approach of bonus season, there’s a lot to think about as we head into 2026.
As always, the purpose of financial planning isn’t just to maximise pounds and pence. It’s to help you live a better life. Whether that’s retiring early, spending more time with family, or pursuing projects you’re passionate about, your finances should support those goals.
Here’s to making 2026 your best financial year yet.
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Want to learn more about how we help bp Leaders optimise their finances? Explore our bp services page here. If you’d like to discuss your specific situation, you can get in touch with our team directly.
While we have extensive experience helping bp employees and alumni optimise their benefits, Emery Little operates independently and is not affiliated with or endorsed by the bp group, including BP Pension Trustees Limited, on behalf of the BP Pension Fund. This allows us to provide objective, independent guidance focused solely on your best interests.
