LONDON, Jan 14, 2026, 08:43 GMT — Regular session
- BP signaled $4 billion to $5 billion in impairments for its energy transition businesses in the fourth quarter
- The company warned that oil trading remained weak and said lower prices would drag down quarterly earnings.
- Investors are turning to the Feb. 10 results for specifics on charges, cash returns, and debt
BP shares dipped about 1% in early London trading Wednesday. The oil giant said it expects $4 billion to $5 billion in impairments this quarter tied to its energy transition units and flagged a weak oil trading result. (Reuters)
This update comes as BP works to recalibrate expectations with fresh leadership and a CEO transition set for April. Investors have demanded clearer communication, more consistent cash returns, and quicker debt paydown following a turbulent period of shifting strategies.
BP closed Tuesday up 2.4% at 437 pence, though it remains roughly 8% shy of its 52-week peak reached last November, according to MarketWatch data. (MarketWatch)
The impairment charge is an accounting write-down recorded when assets fall below their carrying value. BP said these impairments won’t impact underlying replacement cost profit, its preferred net income metric. A company spokesperson declined to specify which projects triggered the charge.
BP’s trading statement highlighted softer “realisations”—the prices received for oil and gas—and warned the oil trading result will likely be “weak.” Gas marketing and trading, meanwhile, is expected to come in “average.” (Investing.com South Africa)
BP forecasted net debt for the end of Q4 to land between $22 billion and $23 billion, boosted by roughly $3.5 billion in divestment proceeds during the quarter. The company also expects full-year divestments to reach around $5.3 billion, not counting $6 billion from the majority stake sale of its Castrol lubricants unit. (Reuters)
Downstream activity showed some mixed results. BP reported stronger realised refining margins, adding about $0.1 billion, but noted that this gain was balanced out by turnaround work and a temporary capacity drop following a fire at its Whiting refinery. (Investing.com South Africa)
BP now expects its underlying effective tax rate for 2025 to hover around 42%, higher than previously forecast. The company also confirmed it will release its Q4 and full-year 2025 results on Feb. 10. (Nasdaq)
Investors face risk as the scale of the write-down and scant project details raise questions about what’s actually being cut—and how that impacts future growth. On top of that, a weaker oil price environment and softer trading might tighten cash flow, reigniting doubts over the speed of buybacks.
The next major event is the Feb. 10 earnings, where investors expect a detailed breakdown of the impairment charge, updates on debt and cash return strategies, plus any early hints about the CEO transition set for April.
