BP warns of up to $5 billion in impairments due to energy transition and weak oil trading

BP said that it expects to book between $4 and $5 billion of impairments during the fourth quarter. These are mainly related its energy transformation businesses. It also noted a weak oil trading.

Under the new leadership, Chair Albert Manifold has said that BP’s portfolio needs to be simplified.

Meg O'Neill, the new CEO, will replace interim Chief Carol Howle after Murray Auchincloss's sudden departure last month.

BP stated in its trading statement on Wednesday that the impairments will not impact underlying replacement costs profit, their version of net income. A spokesperson declined to provide further information on the?projects that were affected by impairments.

According to previous estimates, the company expects oil and gas production in the fourth quarter "to be roughly flat" compared to the 2.4 million barrels of oil equivalent reported in the third. (Reporting and editing by Shadia Nasralla, Stephanie Kelly)

(source: Reuters)