BP has warned it will write down up to $5bn on its green energy operations as it refocuses on oil and gas under new chair Albert Manifold. The impairment largely affects BP’s gas and low-carbon transition businesses, including cancelled hydrogen projects and efforts to sell a stake in its solar arm, Lightsource. BP said the writedown would not impact underlying profits when full-year results are published in February.
The announcement comes amid weaker oil trading and falling crude prices, with Brent averaging $63.73 a barrel in the final quarter of last year. BP shares dipped following the update, while rival Shell also warned of weaker trading conditions. The sector has been under pressure after oil prices fell nearly 20% last year, with concerns about oversupply heightened by geopolitical developments involving Donald Trump and Venezuela.
BP has continued to cut debt ahead of a leadership transition, with net debt reduced to about $22bn. The writedown follows the surprise appointment of Meg O’Neill as BP’s next chief executive, replacing Murray Auchincloss after a strategic pivot away from earlier green ambitions. Meanwhile, Shell and Exxon Mobil have scrapped plans to sell North Sea gas assets to Viaro Energy, citing changed market conditions, underlining the uncertainty facing the energy sector.
