BP Plc anticipates taking a writedown of up to $5 billion related to its energy transition business for the fourth quarter of 2025. This significant impairment primarily affects its gas and low carbon energy segment, including impacts within equity-accounted entities. The company made this announcement ahead of its full Q4 results, expected on February 10, 2026, and it comes just weeks before new leadership takes over, signaling a renewed focus on fossil fuels.
In addition to the writedowns, BP flagged weak oil trading results for the second consecutive quarter and broadly flat upstream production compared to the previous quarter. The refining margin across BP’s assets also saw a slight decrease, falling to $15.2 per barrel from $15.8 per barrel in Q3 2025. The company's net debt, however, is expected to reduce to between $22 billion and $23 billion by the end of 2025, down from $26.1 billion at the end of Q3, supported by asset divestments totaling approximately $5.3 billion for the full year.
This move by BP to write down up to $5 billion from its green energy investments signals a strategic shift under its incoming leadership. The company is reallocating spending from lower-carbon businesses back to oil and gas in an effort to enhance profitability. The impairments are expected to be excluded from underlying replacement cost profit, BP's measure of net income. Weakened commodity prices, with Brent crude averaging around $63.73 a barrel in Q4 compared to $69.13 in Q3, have also contributed to the challenging financial outlook.
