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 its new chair, Albert Manifold. The writedowns will mainly affect BP’s gas and transition businesses but are not expected to hit underlying profits when full-year results are reported in February.
The move follows BP’s efforts to sell a stake in its solar arm, Lightsource, and its cancellation of hydrogen projects in the UK, Oman and Australia. Shares dipped after the announcement, compounded by weaker oil trading and falling crude prices. Brent crude averaged $63.73 a barrel in the final quarter, down from $69.13 previously, amid global oversupply concerns and a sharp annual fall in oil prices during 2025.
The strategy shift comes ahead of the arrival of new chief executive Meg O’Neill in April, who replaces Murray Auchincloss. Analysts say the writedown underlines the scale of the challenge facing BP as it moves further away from the green ambitions of former boss Bernard Looney. The update came alongside news that Shell and Exxon Mobil have abandoned plans to sell North Sea gas assets, citing changing market conditions.
