BP has warned it will write down between $4bn and $5bn from its green and low-carbon energy businesses as it refocuses on fossil fuels under new chair Albert Manifold. The writedown will mainly affect BP’s gas and transition divisions but is not expected to impact underlying profits when full-year results are published in February.
The move reflects BP’s retreat from parts of its renewable strategy, including efforts to sell a stake in its solar arm Lightsource and the cancellation of hydrogen projects in the UK, Oman and Australia. BP shares dipped after the announcement, alongside news that oil trading weakened in the final quarter and crude prices fell. Brent crude averaged $63.73 a barrel in the fourth quarter, down from $69.13 previously, amid global oversupply concerns.
The strategic shift comes ahead of the arrival of new chief executive Meg O’Neill, who will take over in April after leaving Woodside. BP is also reducing debt, cutting net debt to around $22bn–$23bn. Analysts say the writedown highlights the scale of the challenge facing BP as it pivots away from green ambitions pursued under former leadership and back towards traditional oil and gas production.
