BP flags $5B impairments as oil trading weakens
Photo: Reuters
BP expects $4–5 billion in fourth-quarter impairments, mostly linked to its energy transition projects, the company said Wednesday. The impairments will not affect underlying net income.
The British oil giant warned that weaker oil and gas prices will further weigh on earnings. Brent crude averaged $63.73 per barrel in Q4, down from $69.13 in Q3, while European gas prices fell 9%. BP estimates lower oil and gas prices will cut quarterly earnings by $300–700 million, News.Az reports, citing Reuters.
Net debt is projected at $22–23 billion by year-end, down from $26.1 billion in Q3, boosted by $5.3 billion in asset sales. The company aims to reduce debt to $14–18 billion by 2027.
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