BP has revealed an additional $1bn (£750m) write-down from its struggling energy transition division, dealing another blow to the embattled oil giant.
The FTSE 100-listed company said it expected to write down the value of its low-carbon and energy transition division by a further $1bn, on top of a $5bn write-down it booked earlier this year.
The latest charge stems from BP’s failed attempt to reinvent itself as a clean energy company under a strategy introduced in 2020 by then-chief executive Bernard Looney.
Looney had slashed oil output by 40 per cent and invested billions in green power projects before leaving the company in 2023 following a review of his personal relationships with colleagues.
His successor, Murray Auchincloss, lasted less than two years in the top job as investor impatience with the pace of BP’s net zero reversal grew increasingly difficult to contain.
New chief executive Meg O’Neill, BP’s first ever female boss, has since pledged to refocus the business firmly on its oil and gas operations while restoring stability after months of boardroom turmoil.
In a LinkedIn post last week marking 100 days in her role, O’Neill said: “When people depend on us, they should know exactly what they’re going to get from BP: strong performance, delivered consistently, every quarter.”
She added: “I want us to be the most ‘predictable’ company out there,” signalling a clear break from the strategic uncertainty that defined recent years at the company.
The executive upheaval at BP has been significant, with chairman Albert Manifold forced out in May after just eight months in the role amid claims of bullying and verbal abuse, which he has denied, calling them lies.
His departure was followed by the exits of William Lin, a lifelong BP executive and head of the company’s gas and low-carbon business, and Carol Howle, its deputy chief executive.
In its Tuesday trading update, BP said its oil trading division gained “slightly” from the conflict in the Middle East as crude prices soared during the quarter.
However, disruptions in the Strait of Hormuz weighed on overall operations, with BP reporting that its oil and gas production fell during the period as a result.
BP also said it expected to reduce its net debt from $25.3bn to between $22bn and $23bn, offering investors some reassurance amid the turbulence surrounding the company’s ongoing strategic reset.