BP to book up to US$5 billion in impairments on low-carbon businesses

LONDON, Jan 16 — BP expects to book US$4 billion to US$5 billion in fourth-quarter impairments, primarily tied to its low-carbon energy businesses, as the company redirects spending toward oil and gas to boost returns under new leadership.

The impairments reflect a strategic shift under chairman Albert Manifold and other new executives.

BP announced the move in a statement on Thursday, citing a focus on enhancing profitability.

The company did not specify which low-carbon projects are affected but indicated the impairments relate to renewable energy and other green initiatives.

This decision comes amid broader industry trends where oil majors are reassessing investments in clean energy due to market pressures.

BP's redirection of funds aims to prioritize higher-margin oil and gas operations in the short term.

In recent years, BP had committed to increasing low-carbon investments as part of its net-zero goals.

The impairments may impact the company's financial results for the quarter, with details to be released in upcoming earnings reports.

Analysts suggest this could signal a slower transition to renewable energy for BP compared to previous plans.

BP has not provided further comments on long-term strategy adjustments beyond the current quarter.