BP has said it expects to take a writedown of up to $5bn on its struggling green and low-carbon energy businesses as it refocuses on fossil fuels under its new leadership. The company said the impairment, largely affecting its gas and transition divisions, would not impact underlying profits when full-year results are published in February. BP has already cancelled hydrogen projects in the UK, Oman and Australia and is seeking to sell a stake in its solar arm, Lightsource.
The announcement comes as BP grapples with weaker oil trading and falling crude prices, with Brent averaging $63.73 a barrel in the fourth quarter. Shares fell after the update, while rival Shell also warned of softer trading conditions. BP has reduced net debt to around $22bn to $23bn and is preparing for the arrival of new chief executive Meg O’Neill in April, following a period of leadership upheaval. Analysts say the writedown highlights the scale of the challenge ahead as BP moves further away from its earlier green ambitions in favour of boosting fossil fuel production.
