BP has warned it will write down between $4bn and $5bn from the value of its green and low-carbon energy businesses as it refocuses on fossil fuels under its new chair, Albert Manifold. The impairment will mainly affect BP’s gas and low-carbon transition divisions but is not expected to hit underlying profits when full-year results are published in February.
The move follows BP’s decision to scale back renewable ambitions, including attempts to sell a stake in its solar arm Lightsource and the cancellation of hydrogen projects in the UK, Oman and Australia. Shares dipped after the update, compounded by weaker oil trading in the final quarter and lower crude prices. BP reported average Brent crude prices of $63.73 a barrel in the fourth quarter, down from $69.13 previously.
Oil prices fell nearly 20% in 2025 amid oversupply concerns, with further pressure linked to comments by Donald Trump on Venezuela’s oil sector. However, prices rebounded this week on fears of potential supply disruptions involving Iran. BP also said it reduced net debt to between $22bn and $23bn.
The writedown comes ahead of the arrival of incoming chief executive Meg O’Neill in April, replacing Murray Auchincloss after a turbulent period that saw the company pivot away from the green strategy championed by former CEO Bernard Looney. Analysts said the downbeat update underlines the scale of the challenge facing BP’s new leadership as it seeks to revive performance.
