BP has said it expects to write down up to $5bn on its struggling green energy operations as it refocuses on fossil fuels under new chair Albert Manifold. The writedowns will mainly affect BP’s gas and low-carbon transition businesses but are not expected to impact underlying profits when full-year results are published in February.
The move follows BP’s efforts to sell a stake in its solar arm Lightsource and the cancellation of hydrogen projects in the UK, Oman and Australia. Shares fell after BP also warned of weaker oil trading in the final quarter, echoing similar caution from rival Shell. Oil prices dropped sharply in 2025, with Brent crude averaging $63.73 a barrel in the fourth quarter, although prices rose this week on concerns over Iranian supply disruptions.
BP has continued cutting debt, reducing net debt to between $22bn and $23bn by year end. The update comes shortly before incoming chief executive Meg O’Neill takes over in April, replacing Murray Auchincloss. Analysts say the writedown and weaker trading highlight the scale of the challenge facing BP as it pivots away from its earlier green ambitions and back towards traditional oil and gas production.
