BP has warned it will write down between $4bn and $5bn from its green and low-carbon energy businesses as it pivots back towards fossil fuels under its new leadership. The writedowns mainly affect BP’s gas and transition divisions but will not impact underlying profits when full-year results are reported in February. The move follows cancelled hydrogen projects in the UK, Oman and Australia, and efforts to sell a stake in its solar arm, Lightsource.
BP’s shares dipped after the announcement, alongside weaker oil trading in the final quarter and falling crude prices. Average Brent crude prices dropped to $63.73 a barrel in the fourth quarter, contributing to oil’s steepest annual decline since the pandemic. The shift comes under new chair Albert Manifold and ahead of the arrival of incoming chief executive Meg O’Neill, who replaces Murray Auchincloss in April. Analysts say the writedown highlights the scale of the challenge facing BP as it retreats further from the green ambitions pursued under former chief executive Bernard Looney.
