BP said on Tuesday it will write down between $4 billion and $5 billion in its energy transition segment, reflecting a strategic pullback from parts of its gas and low-carbon energy business.
The impairment comes after the company signalled a shift in direction over the past year, scaling back earlier ambitions in renewables. In February, then chief executive Murray Auchincloss told investors BP would “fundamentally reset” its strategy, citing the need for greater capital discipline.
At the same time, BP said it would cut around $5 billion from its annual spending on renewables and pursue a more “capital light” approach to developing its wind and solar platforms.
Since then, the company has taken a number of steps to reduce its exposure to renewable assets. BP spun off its offshore wind business into a separate joint venture with Japan’s JERA, put the UK operations and maintenance arm of its Lightsource BP venture up for sale, and sold its U.S. onshore wind power business to LS Power.
The energy transition segment includes BP’s gas activities alongside its low-carbon energy operations.
BP is scheduled to report its full fourth-quarter and full-year 2025 results on Feb. 10.
