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 under new chair Albert Manifold. The writedowns will mainly affect BP’s gas and transition businesses but are not expected to impact underlying profits when full-year results are reported in February.
The move follows BP’s struggles to offload a stake in its solar arm Lightsource and the cancellation of hydrogen projects in the UK, Oman and Australia. Shares fell after BP also warned of weaker oil trading in the final quarter, echoing similar concerns from FTSE 100 rival Shell. Brent crude prices averaged $63.73 a barrel in the fourth quarter, down sharply from earlier in the year, contributing to pressure on earnings.
The write-down comes amid leadership changes, with BP appointing Meg O’Neill as chief executive from April, replacing Murray Auchincloss. Analysts say the weaker performance highlights the challenge facing O’Neill as BP pivots further away from the green ambitions pursued under former chief executive Bernard Looney. BP said it has continued to cut debt, reducing net debt to as low as $22bn by year end, as it seeks to stabilise its finances during the strategic shift.
