BP has warned it expects to write down up to $5bn on its green and low-carbon energy businesses as it refocuses on fossil fuels under new chair Albert Manifold. The writedowns, mainly linked to BP’s gas and transition divisions, will not affect underlying profits when full-year results are published in February. BP has been scaling back green ambitions by cancelling hydrogen projects and seeking to sell a stake in its solar arm, Lightsource.
The update comes amid weaker oil trading and falling crude prices, with Brent averaging $63.73 a barrel in the final quarter. Shares dipped after the announcement, echoing similar warnings from rival Shell. BP also confirmed net debt fell to between $22bn and $23bn. The strategic shift follows the appointment of incoming chief executive Meg O’Neill, who will take over in April as the company seeks to rebuild after years of leadership change and volatile markets.
