BP doesn't wait for new CEO to take big write-off of renewables business

By Steve Goldstein

Oil major BP said it's going to take a big writedown in the fourth quarter.

BP isn't even waiting for its new CEO to start before taking a big charge over its push into renewable energy.

The company that used to be named British Petroleum said on Wednesday it would take a writedown of between $4 billion and $5 billion in the fourth quarter on what it calls its transition businesses.

It came in the company's fourth-quarter trading update, in which it also reported flat production, lower oil and gas prices, "weak" oil trading and a higher tax rate than previously expected. Analysts at Jefferies said investors had anticipated the lack of production growth but may be disappointed by the guidance given on prices.

BP last month said it was bringing in Meg O'Neill from Australia's Woodside Energy to become chief executive in April. Executive vice president Carol Howle is serving as interim CEO until then after the departure of Murray Auchincloss, whose efforts to streamline the company received a cool reception from investors.

BP shares (UK:BP) (BP) traded 1% lower in early trading in London.

-Steve Goldstein

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

01-14-26 0322ET