BP has warned it will write down up to $5bn (£3.7bn) from its underperforming green energy businesses as it refocuses on oil and gas. The impairment, mainly affecting its gas and low-carbon “transition” divisions, will not hit underlying profits when full-year results are published in February. The move comes under new chair Albert Manifold, as BP scales back renewable ambitions after cancelling hydrogen projects and attempting to sell a stake in its solar arm, Lightsource.
BP’s shares dipped after the announcement, alongside news that oil trading weakened in the final quarter and Brent crude prices fell sharply last year. The company cited average fourth-quarter Brent prices of $63.73 a barrel, down from the previous quarter, amid oversupply fears and geopolitical uncertainty. BP has continued to reduce debt, cutting net debt to between $22bn and $23bn. The writedown follows the appointment of Meg O’Neill as chief executive, replacing Murray Auchincloss, as BP seeks to revive performance after moving further away from the green strategy pursued under Bernard Looney. Analysts said the subdued outlook underlines the scale of the challenge facing the incoming CEO.
