FTSE 100 energy firm BP has informed markets that its upcoming third-quarter update will include a post-tax impairment charge ranging from $3bn to $4.5bn. These charges are primarily linked to transition businesses within its gas and low carbon energy segment.
This move follows a substantial scaling back of BP's green ambitions earlier this year, which saw the company reduce its planned transition capital expenditure by more than $5bn annually, targeting up to $2bn. In the final quarter of 2025, BP had already forecast write-downs of between $4bn and $5bn as it began to reassess its strategy for transition assets.
BP has also started selling off and restructuring parts of its transition unit, including the sale of a majority of its clean-energy and transition-focused venture capital portfolio in July 2026. This strategic shift comes amid pressure from activist investor Elliott Management to reduce renewable investments and increase fossil fuel spending.
Separately, BP anticipates a strong quarter, forecasting a major reduction in its net debt to between $13.5bn and $14.5bn, a decrease from $22.3bn in the second quarter. Stronger refining margins are also expected to contribute a $1.9bn to $2.1bn earnings boost compared to the previous quarter, following a surge in fuel prices.