BP Plans $5 Billion Asset Write-Down Amid Leadership Changes and Market Challenges
BP plans to write down up to $5 billion in assets in Q4, affecting its natural gas and low-carbon sectors, amid leadership changes with CEO Meg O'Neill set to take over in April. The company is refocusing on fossil fuels, aiming for $20 billion in asset sales by 2027, while facing challenges from oversupply and declining oil prices despite a 10% stock increase last year.
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BP announced plans for an asset write-down of up to $5 billion in Q4, primarily impacting its natural gas and low-carbon sectors. This follows the appointment of CEO Meg O'Neill, who will start in April.
BP's oil trading performance is expected to remain weak for the second quarter, despite steady oil production and a reduction in net debt, which is projected to be between $22 billion and $23 billion. The company has shifted focus back to its fossil fuel business, scaling back low-carbon investments, and aims for $20 billion in asset sales by 2027. BP's stock rose 10% last year amid increased oil and gas production, but faces challenges from oversupply and declining prices.
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