BP has warned it will 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 company said the impairment mainly affects its gas and transition businesses but will not impact underlying profits when full-year results are published in February. BP has already cancelled hydrogen projects in the UK, Oman and Australia and is seeking to sell a stake in its solar arm, Lightsource.
The announcement comes amid weaker oil trading and falling crude prices, with Brent crude averaging $63.73 a barrel in the final quarter of last year. BP shares dipped following the update, which followed a similar trading warning from rival Shell. BP has continued to reduce debt, cutting net debt to between $22bn and $23bn. The writedown also precedes the arrival of incoming chief executive Meg O’Neill, who replaces Murray Auchincloss in April. Analysts say the move underlines the scale of the challenge facing BP as it retreats further from earlier green ambitions and bets more heavily on oil and gas.
