BP has said it expects to write down between$4bn and$5bn of its green energy business.The move comes as the company refocuses on fossil fuels under its new leadership.
The energy major said the writedowns largely relate to its gas and low-carbon energy divisions.These sit within what BP describes as its“transition businesses”.
The company stressed that the writedowns will not affect its underlying profits.Full-year results are due to be reported in February.
BP has been scaling back parts of its clean energy strategy.It has attempted to sell a stake in its solar business Lightsource and has cancelled hydrogen projects in the UK,Oman and Australia.
Shares in BP fell by as much as 1.4%on Wednesday morning before recovering some losses.The company also warned that oil trading was weaker in the final quarter of the year.
The update follows a similar warning from rival Shell.The oil major cited weaker trading conditions amid falling oil prices.
BP said the average price of Brent crude fell to$63.73 a barrel in the fourth quarter.This compares with$69.13 a barrel in the previous quarter.
Oil prices recorded their steepest annual fall since the Covid pandemic.Prices dropped by almost 20%in 2025 as global supply outpaced demand.
Recent political developments have added further pressure.Donald Trump’s comments on rebuilding Venezuela’s oil industry have increased fears of a supply glut.
However,prices rose midweek on concerns over potential Iranian supply disruptions.Brent futures climbed 1.4%to$66.39.
BP said it continued to reduce debt during the quarter.Net debt fell to between$22bn and$23bn,down from$26bn in the previous quarter.
The writedown comes ahead of a leadership change at BP.Meg O’Neill will take over as chief executive in April.
She replaces Murray Auchincloss,who led the company for less than two years.Under his tenure BP moved away from the green ambitions of former chief executive Bernard Looney.
Dan Coatsworth of AJ Bell said:“Put the writedowns together with a weak showing for its oil trading arm and the impact from weaker oil prices,[it]looks like the final set of quarterly results before Meg O’Neill steps into the hot seat in April will be downbeat.”
Shell and Exxon Mobil also announced they had pulled out of selling North Sea gas assets to Viaro Energy.Shell said market conditions had changed and it will continue operating the assets.
