BP PLC said Wednesday it expects to book $4-5 billion in write-downs primarily related to its “transition” business for the fourth quarter of 2025.
“These charges are primarily attributable to the gas and low-carbon energy segment and are excluded from underlying replacement cost profit [BP’s version of adjusted net profit]”, the British oil and gas giant said in an outlook statement ahead of results, scheduled for February 10, 2026. BP did not disclose the affected projects.
BP had already recognized a net impairment charge of $881 million from natural gas and low-carbon energy for the first nine months of 2025, and $1.86 billion for 2024, in its third quarter report published November 4, 2025.
BP has signed agreements to sell several energy transition-related businesses as part of a “reset” strategy that involves divesting $20 billion worth of assets by 2027 and scaling down renewables investment.
On December 16, 2025 state-owned Petróleo Brasileiro SA (Petrobras) and BP solar company Lightsource BP Renewable Energy Investments Ltd said they had penned a deal under which Petrobras would acquire 49.99 percent of Lightsource BP’s subsidiaries in Brazil. Lightsource BP’s Brazilian portfolio included 1-1.5 gigawatts in different stages of development, according to a joint online statement.
On August 4, 2025 Japanese power utility JERA Co Inc and BP completed the spinoff of their offshore wind portfolios into a joint venture. BP contributed its development projects in Germany and the United Kingdom and secured leases in the UK and the United States.
On July 18, 2025 BP said it had agreed to divest its onshore wind business in the U.S. to LS Power Development LLC, giving up 1.3 gigawatts of net capacity from 10 projects in operation.
On July 9, 2025 BP said it had penned a deal to divest its BP Pulse, convenience and mobility businesses in the Netherlands to local fuels distributor Catom BV. BP Pulse is BP’s multinational electric vehicle charging business.
On March 27, 2025 BP said it was initiating a marketing process to sell its retail sites, associated fleet and EV charging infrastructure in Austria, as well as its stake in the Linz fuel terminal.
In Wednesday’s statement BP also said it expects gas and low-carbon energy realizations – from consolidated subsidiaries, excluding equity-accounted entities – to take a negative impact of $100-300 million “including changes in non-Henry Hub natural gas marker prices”.
“The gas marketing and trading result is expected to be average”, BP added.
In its products segment BP projects higher realized refining margins of around $100 million for Q4, “offset by a higher impact from turnaround activity and the temporary impact of reduced capacity following a fire at the Whiting refinery”, the statement said. “The oil trading result is expected to be weak”.
In the customers segment BP expects “seasonally lower volumes and broadly flat fuels margins”.
“In the oil production and operations segment, realizations, compared to the prior quarter, are expected to have an impact of $(0.2) to (0.4) billion including the impact of the price lags on BP’s production in the Gulf of America and the UAE”, BP said.
It expects Q4 upstream production, including its share from equity-accounted entities, “to be broadly flat compared to the prior quarter, with production broadly flat in oil production and operations and lower in gas and low carbon energy”.
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