BP has said it expects to write down up to $5bn from its green energy and low-carbon businesses as it refocuses on fossil fuels. The move comes under the company’s new chair, Albert Manifold, and reflects weaker performance in BP’s gas and transition divisions. The company said the writedowns would not affect underlying profits when full-year results are published in February.
BP has been scaling back parts of its energy transition strategy, including attempting to sell a stake in its solar arm Lightsource and cancelling hydrogen projects in the UK, Oman and Australia. Shares fell after BP also warned of weaker oil trading in the fourth quarter, echoing similar concerns from rival Shell. Lower oil prices weighed on results, with Brent crude averaging $63.73 a barrel in the final quarter of 2025 after a steep annual decline.
The update arrives ahead of a leadership change, with Meg O’Neill set to become BP’s chief executive in April, replacing Murray Auchincloss. Analysts said the writedown highlights the scale of the challenge facing O’Neill as BP seeks to revive performance after stepping back from the green ambitions pursued under former chief executive Bernard Looney.
