New Delhi, Jan 14: BP expects impairments of $4 billion to $5 billion in the fourth quarter, primarily linked to its energy transition businesses, as it shifts financial focus back to traditional oil and gas investments.
This strategic capital reallocation, under the leadership of Chair Albert Manifold, aims to simplify BP’s portfolio and comes ahead of Meg O’Neill’s appointment as CEO in April, following the previous CEO’s abrupt departure.
While these impairments are expected to arise mainly from the gas and low carbon energy segments, BP confirmed they would not affect the underlying replacement cost profit.
The fourth quarter production remained stable at 2.4 million barrels of oil equivalent per day, though weaker prices might diminish revenues from gas and oil by a combined total of $300 million to $700 million.
Additionally, BP anticipates impacts from refining margins, turnaround activities, and reduced capacity due to a fire at the Whiting refinery. Global Brent crude prices averaged $63.73 per barrel in the fourth quarter, down from $69.13 in the third quarter.
