The Newshound

BP takes up to £3.4bn hit on its green energy businesses as it pivots back to oil and gas

BP faces a post-tax impairment charge of up to $4.5bn, primarily hitting its gas and low-carbon energy transition unit, as part of its third-quarter update due at the end of the month.
BP faces a post-tax impairment charge of up to $4.5bn, primarily hitting its gas and low-carbon energy transition unit, as part of its third-quarter update due at the end of the month.
A North Sea oil and gas rig, as BP earlier this year capped green transition spending at $2bn annually, cutting its planned budget by over $5bn.
A North Sea oil and gas rig, as BP earlier this year capped green transition spending at $2bn annually, cutting its planned budget by over $5bn.

BP has warned investors it expects impairments of between $3bn and $4.5bn in its third-quarter results, almost entirely from its gas and low-carbon energy segment, as the oil giant accelerates its retreat from green investment. It marks the second time this year BP has booked enormous write-downs on renewables, after flagging up to $5bn in similar charges back in January. New chief executive Meg O'Neill will set out a full strategy vision in New York on December 15, her first since taking over in April.

BP's green dream is proving costly — analyst Alex Pugh said the write-downs show it 'still isn't fully paid for.'

Soaring oil and gas prices driven by the Iran war have helped slash BP's net debt from $22.3bn to as low as $13.5bn, hitting its 2027 target a year early.

O'Neill inherited chaos at the top: chairman Albert Manifold was removed after whistleblower reports he bullied and verbally abused staff.

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