BP Plc said it expects to take as much as $5 billion in writedowns for the fourth quarter, largely related to its transition businesses.
The oil giant foresees impairment charges mostly related to its gas and low carbon businesses, while oil trading results for the year’s final three months are “expected to be weak” for a second straight quarter, BP said in a statement on Wednesday, ahead of an earnings report next month.
Production will be flat, while it managed to reduce net debt.
The report offers the first insight into how BP navigated a slump in oil prices in the last quarter of a tumultuous year, just weeks after the shock ouster of Murray Auchincloss from the helm.
Auchincloss had set in motion a push to focus the business on fossil fuels after years of failed low-carbon bets, but new Chairman Albert Manifold said changes weren’t happening fast enough.
Last month, Manifold named Woodside Energy Group Chief Executive Officer Meg O’Neil, who has led the Australian producer with a clear focus on oil and gas, to replace Auchincloss.
The shares are up about 4% since the announcement.
BLOOMBERG