BP expects $4.5 billion energy transition impairments

• BP (NYSE:BP) expects third-quarter 2026 post-tax impairment charges of $3 billion–$4.5 billion, mainly linked to assets in its gas and low-carbon energy division.
• The company expects stronger refining margins to improve earnings by $1.9 billion–$2.1 billion compared with the previous quarter.
• BP said the impairment charges will be excluded from underlying replacement cost profit, its main operating performance measure.

BP (NYSE:BP) said it expects to record third-quarter 2026 post-tax impairment charges of between $3 billion and $4.5 billion, with most charges related to energy transition businesses.

The company said the write-downs will primarily affect assets within its gas and low-carbon energy division, while the charges will not be included in underlying replacement cost profit.

BP expects its refining business to benefit from improved margins, with realized refining margins forecast to increase by $1.9 billion to $2.1 billion compared with the second quarter, while its refining indicator margin reached $46.70 per barrel.

The company expects third-quarter net debt of $13.5 billion–$14.5 billion, down from $22.3 billion at the end of June, and expects broader obligations to decline by approximately $9 billion–$10 billion.

BP produces oil, natural gas, and lower-carbon energy solutions, while continuing to adjust its asset portfolio and capital allocation strategy across its businesses.