BP takes multi-billion dollar hit in Q4 as "low-carbon" bets sour

Oil major BP expects to book $4 billion to $5 billion in fourth-quarter impairments, mainly tied to its "low-carbon" energy businesses. This comes as it redirects spending to oil and gas to boost returns under new leadership including Chair Albert Manifold.

The British company said in a trading statement on Wednesday ahead of results on February 10 that the impairments are excluded from underlying replacement cost profit. A spokesperson declined to say which projects were affected.

BP's "low-carbon" portfolio also includes US biogas producer Archaea which BP bought in 2022 for $4.1 billion. Citi analysts said they suspected impairments might be linked to this unit.

After taking a $24 billion hit from exiting Russia in 2022, BP recorded impairments of $5.7 billion in 2023 and $5.1 billion in 2024. It has flagged around $6.9 billion for last year, according to its releases and Reuters calculations.