BP faces up to $4.5bn hit from green energy write-down

Summarised from 3 outlets · Updated 13 Oct, 09:20 · Archive

BP will take a post-tax impairment charge of $3bn to $4.5bn in its third quarter results due to write-downs in its energy transition unit.

BP will take a post-tax impairment charge of $3bn to $4.5bn in its third quarter update, set for the end of the month, following hefty write-downs in its energy transition unit. The charges are primarily attributable to transition businesses in the gas and low carbon energy segment. This marks the second time this year the oil major has been hit by large write-downs in its low-carbon business.

The announcement follows a significant scale-back of green ambitions from the FTSE 100 energy giant, which slashed its planned transition capital expenditure by more than $5bn annually earlier this year to a target of up to $2bn. BP has begun selling off and restructuring parts of its transition unit, including the sale of the majority of its clean-energy and transition-focused venture capital portfolio to growth investor Verdane in July 2026.

Alex Pugh, analyst at Freetrade, said the write-downs show 'the green dream still isn't fully paid for'. The pivot away from green commitments follows growing pressure from activist investor Elliott Management, which upped its stake to more than five per cent, to abandon green commitments, slash renewable investments and ramp up fossil fuel spending.

BP faces up to $4.5bn hit from green energy write-down — Image: This is Money

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How it is being reported

BP expects to take £3bn hit from green energy business as it pivots away from low carbonIt is the second time this year the oil major has been hit by large write-downs in its low-carbon business.This is Money · 13 Oct, 09:09
BP to outline strategy update in December as it reveals steep drop in debtsThe FTSE 100 firm has seen net debt already reduce to its 2027 target after a sharp drop in the third quarter amid a boost to earnings.Independent Business · 13 Oct, 09:09
BP braces for hit of up to $4.5bn in pivot from green energyBP is bracing for a hit of up to $4.5bn after a hefty write-down in its energy transition unit, as the firm pivots away from aggressive green targets. The FTSE 100 energy giant told markets on Tuesday its third quarter update – set for the end of the month – would include a post-tax impairment [...]City AM · 13 Oct, 07:31

In this story: BP · Elliott Management · Verdane · Freetrade

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