BP PLC's stock plummeted 5.76% in pre-market trading following the company's announcement that it is suspending its share repurchase program.

The energy giant reported a 30% sequential decline in fourth-quarter underlying replacement cost profit to $1.54 billion, in line with expectations, but decided to halt buybacks to allocate excess cash toward strengthening its balance sheet. The move comes as BP faces pressure from weaker oil prices and aims to reduce net debt, with increased cost-cutting targets of $5.5 billion to $6.5 billion by 2027.

Analysts note that the suspension of buybacks, described as "ripping off the Band-Aid," reflects management's focus on deleveraging and investing in oil and gas opportunities, but investors reacted negatively to the halt in shareholder returns.