BP reveals multibillion-dollar hit on energy transition

British energy giant BP on Wednesday revealed a write-down of up to $5 billion linked to its energy transition efforts that will be reflected in the company's upcoming annual results.

In an update on the final quarter of 2025, BP added that group oil trading was "weak" amid cooling crude prices.

BP last year shelved targets on reducing its carbon emissions and in December appointed industry veteran Meg O'Neill to be chief executive from April, replacing Murray Auchincloss.

The fourth-quarter results are expected to include "impairments... in the range of $4 to 5 billion, primarily related to our transition businesses", the company said in a statement said.

"These charges are primarily attributable to the gas and low carbon energy segment," it said, adding that "The oil trading result is expected to be weak."

Its share price was down 1.4 percent following the update and with oil prices falling in early London deals.

"BP shares are trading lower this morning after it highlighted a significant impairment and weaker oil prices," said Victoria Scholar, head of investment at traders Interactive Investor.

BP, which posts its annual results on February 10, recently agreed to sell a majority stake in its Castrol lubricants business to US investment firm Stonepeak for $6 billion, as it seeks to cut debt.