BP warns of up to $4.5 bn hit as green transition unit writedown looms
BP said it expects a post-tax impairment of $3-$4.5 bn tied to its gas and low-carbon transition businesses.
BP disclosed that its third-quarter results, due at the end of the month, will feature a post-tax impairment between $3 bn and $4.5 bn, largely tied to the gas and low-carbon portion of its transition business. The charge comes after the firm trimmed its transition capital budget by more than $5 bn annually earlier this year, targeting up to $2 bn, and after selling most of its clean-energy venture-capital portfolio to Verdane in July.
Activist shareholder Elliott Management, now holding over five per cent, has urged BP to abandon green commitments and increase fossil-fuel spending. BP also expects net debt to drop to $13.5-$14.5 bn from $22.3 bn and anticipates a $1.9-$2.1 bn earnings boost from stronger refining margins, mirroring gains at Shell. The company’s upstream output is projected at 2.19-2.24 million barrels of oil equivalent per day, slightly below the prior quarter.
Why it matters
The write-down shows BP shifting away from green investments, reshaping the energy transition landscape and investor outlook.
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