BP has warned it will take a writedown of up to $5bn on its green and low-carbon energy businesses as it refocuses on fossil fuels. The impairment, largely affecting its gas and transition divisions, will not hit underlying profits when BP reports full-year results in February. The move follows the appointment of new chair Albert Manifold and signals a further retreat from renewable ambitions. BP has already cancelled hydrogen projects in several countries and is seeking to sell a stake in its solar arm, Lightsource.
The update comes amid weaker oil trading and falling crude prices, with Brent averaging $63.73 a barrel in the final quarter. BP’s shares dipped after the announcement, echoing similar warnings from rival Shell. BP said it has continued to reduce debt and is preparing for leadership change, with Meg O’Neill set to take over as chief executive in April. Analysts said the writedown highlights the scale of the challenge facing the company as it seeks to stabilise performance while prioritising traditional oil and gas production.
