London, Jan 16, 2026, 08:54 GMT — Regular session
- BP shares slipped in early trading, following a 1.3% drop on Thursday
- The company has signaled $4-$5 billion in low-carbon impairments for Q4
- Investors are seeking clearer guidance on buybacks, debt levels, and strategic direction ahead of the upcoming results update
BP shares (BP.L) slipped in early London trade Friday, following the company’s alert about a potential multi-billion dollar hit linked to its low-carbon investments. The stock dropped 0.6% to 435.1 pence, after sliding 1.3% the day before. Investing.com
This matters now because write-downs often serve as a warning sign. Even when labeled “non-cash” and excluded from certain profit metrics, they reveal projects falling short of their expected returns.
The selloff has intensified the usual debate over cash returns. BP has relied on buybacks to prop up its shares, and if commodity prices remain weak, a slowdown in repurchases could hit the stock hard.
On Wednesday, BP announced it anticipates $4 billion to $5 billion in fourth-quarter impairments—write-downs tied mostly to its low-carbon energy assets. The company said this charge won’t affect its underlying replacement cost profit, its preferred earnings measure. BP also pointed to softer oil trading and falling prices, estimating that lower oil prices could shave $200 million to $400 million off quarterly earnings, while weaker gas prices might cut $100 million to $300 million. Net debt is projected to land between $22 billion and $23 billion by the end of 2025. RBC analyst Biraj Borkhataria suggested the move signals new management is “clearing the decks” and hinted that cutting buybacks might be next to accelerate deleveraging. Reuters
BP disclosed on Thursday that it acquired 3,065,359 shares as part of its buyback scheme, at a volume-weighted average price near 434.9 pence. The firm plans to keep these shares in treasury. Investegate
Pressure is mounting from another front. Climate-focused investor group Follow This, along with more than 20 other investors, announced on Wednesday that they had filed resolutions urging BP and Shell to reveal how they plan to generate value if global oil and gas demand falls. Reuters
BP finds itself caught in a bind: it must maintain returns that appease shareholders, control spending tightly to prevent another debt alarm, and still promote its transition goals.
The risk is more immediate. Should crude and gas prices remain low and trading income decline further, the capacity for buybacks and dividends could shrink fast — particularly if additional impairments emerge.
Energy shares often swing with oil on any news, and BP faces added volatility as its write-downs spark concerns over further potential repricing in its portfolio.
BP’s fourth-quarter and full-year earnings, set for Feb. 10, represent the next pivotal moment. Investors are looking for clarity on impairments and guidance on buybacks and debt levels. Zacks
