BP has said it expects to write down up to $5bn (£3.7bn) from its green and low-carbon energy businesses as it refocuses on fossil fuels. The move comes under the leadership of its new chair, Albert Manifold, and reflects weaker performance in BP’s transition businesses, including gas and renewables.
The company said the writedowns, largely linked to its low-carbon and gas divisions, will not affect underlying profits when it reports full-year results in February. BP has already scaled back parts of its energy transition, attempting to sell a stake in its solar arm Lightsource and cancelling hydrogen projects in the UK, Oman and Australia. Shares fell after BP also warned that oil trading was weaker in the final quarter, amid falling crude prices.
Brent crude averaged $63.73 a barrel in the final quarter, down from $69.13 previously, following the steepest annual oil price decline since the Covid pandemic. BP has continued cutting debt, reducing net debt to between $22bn and $23bn. The writedown follows the appointment of incoming chief executive Meg O’Neill, who replaces Murray Auchincloss after a period marked by a shift away from the green ambitions of former CEO Bernard Looney. Analysts say the move underlines the scale of the challenge facing BP as it seeks to revive performance in a volatile energy market.
