BP warns of up to $5 billion of energy transition writedowns

BP Plc said it expects to take a loss of as much as $5 billion from its energy transition business, just weeks after a leadership change as it moved back to fossil fuels.

In an update ahead of next month’s earnings, the energy giant said oil trading was weak in the fourth quarter and production remained stable, while net debt also decreased.

The update follows the shocking sacking of CEO Murray Auchincloss, who sought to reset the company after years of failed low-carbon bets and pressure from activist shareholder Elliott Investment Management. –