Profit after tax dropped to US$55 million last year from US$381 million a year earlier, BP said in a statement.
The results come ahead of Meg O’Neill taking over as BP’s chief executive in April, becoming the first woman to lead an oil major.
BP said the annual results included an impairment totalling around US$4 billion linked to its “transition businesses in the gas and low carbon energy segment”.
It added that its annual performance was “delivered against a weaker oil price environment”.
Underlying earnings, which strip out some energy-price movements and one-off charges, fell 16% to US$7.5 billion last year.
Energy prices have been under pressure on concerns that US President Donald Trump’s tariffs will crimp economic growth.
They dropped further as a result of higher output by Opec+ nations and hopes of an end to the war in Ukraine, as Russia remains a major energy producer.
More recently, prices have risen as Trump ramped up military threats against Iran, but have since cooled on easing tensions between Washington and Tehran.
The international oil price benchmark, Brent North Sea crude, was steady Tuesday at US$69 per barrel.
New leadership
BP’s boardroom shakeup at the end of last year came with the company pivoting back to its more profitable oil and gas business, slashing clean energy investment after shelving targets on reducing carbon emissions.
Carol Howle has served as interim CEO since Murray Auchincloss unexpectedly stepped down in December.
“We look forward to Meg O’Neill joining as CEO in April as we accelerate our progress to build a simpler, stronger and more valuable BP for the future,” Howle said in the statement.
“We are in action and we can and will do better for our shareholders,” she added as the group suspended share buybacks.
O’Neill, an American who spent 23 years working for ExxonMobil, is the first external candidate to be appointed CEO of BP in the group’s 116-year history.
She has led Australian group Woodside Energy since April 2021.
BP, which is not alone among peers in scaling back climate targets, agreed in December to sell a majority stake in its Castrol lubricants business to US investment firm Stonepeak for US$6 billion, as it seeks to cut debt.
British rival Shell last week said its net profit rose 11% last year as higher volumes and lower costs helped to offset falling oil and gas prices.
Profit after tax climbed to US$17.84 billion in 2025 from US$16.1 billion a year earlier.