BP has warned 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 relate mainly to BP’s gas and transition businesses but will not affect underlying profits when full-year results are reported in February. BP has struggled to offload a stake in its solar arm Lightsource and has cancelled hydrogen projects in the UK, Oman and Australia.
The update came alongside weaker oil trading in the final quarter and falling crude prices, with Brent averaging $63.73 a barrel compared with $69.13 in the previous quarter. Shares dipped before recovering. The shift in strategy follows leadership changes, with Meg O’Neill set to become BP’s chief executive in April after the departure of Murray Auchincloss. Analysts said the writedown underlines the scale of the challenge facing O’Neill as BP moves further away from its earlier green ambitions and seeks to revive performance amid volatile oil markets.
