BP has said it expects to write down up to $5bn (£3.7bn) from its green and low-carbon energy businesses as it refocuses on fossil fuels under its new leadership. The writedowns, largely linked to gas and transition businesses, will not affect underlying profits when full-year results are published in February. BP has already scaled back its energy transition ambitions by cancelling hydrogen projects in the UK, Oman and Australia, and by seeking to sell a stake in its solar arm, Lightsource.
The announcement comes as BP faces weaker oil trading and falling crude prices, with Brent crude averaging $63.73 a barrel in the final quarter of last year. Oil prices fell nearly 20% in 2025, pressured by global oversupply and geopolitical uncertainty, although recent fears over Iranian supply disruptions have lifted prices slightly. BP’s shares dipped following the update, while rival Shell also warned of weaker trading conditions.
The strategic shift follows the appointment of Meg O’Neill as BP’s new chief executive, replacing Murray Auchincloss. Analysts say the writedowns and weaker performance underline the scale of the challenge facing O’Neill as she takes charge in April, after BP moved away from the green strategy pursued under former chief executive Bernard Looney.
