BP to take hit of up to $5bn on green energy as it refocuses on fossil fuels

"BP has said it expects to write down the value of its struggling green energy business by as much as $5bn (3.7bn), as it refocuses on fossil fuels under its new chair, Albert Manifold. The oil company said the writedowns were mostly related to its gas and low-carbon energy divisions in its transition businesses, but added that wiping between $4bn and $5bn off their value would not affect its underlying profits when it reports its full-year results in February."

"The company has been trying to sell a stake in its solar business, Lightsource, and cancelled hydrogen projects in the UK, Oman and Australia. BP's shares fell by as much as 1.4% on Wednesday morning, before recouping some of their losses, as the company also said oil trading had been weaker during its final quarter of the year. It comes only days after its FTSE 100 rival Shell warned of a weaker performance from trading, amid a drop in the oil price."

BP expects to write down up to $5bn from its struggling green energy and transition businesses, mainly impacting gas and low‑carbon energy divisions, and says the writedown will not affect underlying profits when reporting full‑year results. The company has sought a buyer for a stake in solar arm Lightsource and cancelled hydrogen projects in the UK, Oman and Australia. BP reported weaker oil trading in the final quarter and a fourth‑quarter Brent average of $63.73 a barrel versus $69.13 in the prior quarter. Net debt fell to about $22–23bn from $26bn amid volatile oil markets and geopolitical pressures.

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