BP has said it expects to take writedowns of up to $5bn on its green and low-carbon energy businesses as it pivots back towards fossil fuels under new chair Albert Manifold. The impairments largely relate to BP’s gas and transition divisions and will not affect underlying profits when full-year results are reported in February. The move follows BP cancelling hydrogen projects and attempting to sell a stake in its solar arm, Lightsource. Shares dipped after the announcement, alongside weaker oil trading and falling crude prices.
The strategy shift comes amid a changing leadership team, with Meg O’Neill set to become BP’s chief executive in April, replacing Murray Auchincloss. BP has been reducing debt and refocusing on core oil and gas production after retreating from earlier green ambitions under former CEO Bernard Looney. Analysts say the writedown highlights the scale of the challenge facing BP as it navigates weaker oil prices, intense competition, and pressure to balance energy transition goals with profitability.
