BP has warned it will write down up to $5bn from its green and low-carbon energy businesses as it refocuses on fossil fuels under new leadership. The impairment will largely affect gas and transition assets but is not expected to hit underlying profits when BP reports full-year results in February. The company has been scaling back renewables, including seeking a sale of part of its Lightsource solar arm and cancelling hydrogen projects in the UK, Oman and Australia. BP shares dipped after the announcement, alongside weaker oil trading and falling crude prices.
The shift comes amid leadership change, with Meg O’Neill set to become chief executive in April, replacing Murray Auchincloss, and following a strategic move away from the green ambitions of former boss Bernard Looney. BP is also contending with volatile oil markets, heavy price falls last year and geopolitical uncertainty. Rivals including Shell have also flagged weaker trading, while BP said it continued cutting debt despite the writedown. Analysts say the reset gives O’Neill a low starting point but highlights the scale of the challenge ahead.
