BP Faces Up to $5bn Green Energy Writedown as Strategy Shifts Back to Fossil Fuels

BP expects to write down up to $5bn from its green and low-carbon energy businesses as it refocuses on fossil fuels under new chair Albert Manifold. The writedowns mainly affect BP’s gas and transition divisions but will not impact underlying profits when full-year results are published in February. BP has struggled to monetise parts of its renewables portfolio, attempting to sell a stake in its Lightsource solar arm and cancelling hydrogen projects in the UK, Oman and Australia. Shares dipped after the update, compounded by weaker oil trading and falling crude prices, with Brent averaging $63.73 a barrel in the final quarter. Oil markets remain volatile amid oversupply concerns and geopolitical tensions involving Donald Trump, Nicolás Maduro and Iran. BP said net debt fell to between $22bn and $23bn, down from $26bn the previous quarter. The writedown follows the appointment of incoming chief executive Meg O’Neill, who replaces Murray Auchincloss after BP moved further away from the green ambitions of former boss Bernard Looney. Analysts say the subdued results underline the scale of the challenge facing O’Neill as she prepares to take charge in April.