BP expects billions in impairments on gas and low-carbon activities
The energy group expects to write off up to $4.5 billion in the third quarter, while net debt falls sharply.
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BP expects a post-tax impairment of $3 billion to $4.5 billion in the third quarter on parts of its gas and low-carbon activities. At the same time, the British energy group says net debt was considerably lower at the end of September than three months earlier.
The expectations are set out in a trading update from BP covering the three months to 30 September. The company links the impairment to changes in its gas activities and its low-carbon energy activities. The final quarterly figures will be published on 30 October.
BP expects net debt to be between $13.5 billion and $14.5 billion at the end of September. At the end of June, that debt stood at $22.3 billion, according to the update. BP says the decline is linked, among other things, to the repayment of hybrid securities, higher tax payments, released working capital and lower capital expenditure.
The impairment does not automatically mean that an equal amount of cash leaves the company in the third quarter. It is an accounting adjustment to the value of assets. Such an impairment can, however, affect reported earnings and the picture of expected returns from certain activities.
Production forecasts have also been adjusted. BP expects upstream production of 2.19 million to 2.24 million barrels of oil equivalent per day in the third quarter. In the second quarter, production stood at 2.201 million barrels of oil equivalent per day, according to the company.
The update forms part of a broader effort by BP to strengthen its balance sheet while combining oil, gas and low-carbon activities. In its half-year results, the group reported second-quarter profit attributable to shareholders of $3.9 billion. That figure relates to a different reporting period and cannot be directly compared with the third-quarter profit, which has not yet been published.
For European companies and investors, the combination of both signals is particularly relevant: BP is reducing its debt, but also sees reason to write down the value of parts of its portfolio. The figures do not yet show which activities will ultimately be sold or scaled back. The full quarterly results and management's explanations are needed for that.
One story, several perspectives
What is established
- BP expects a billions-worth impairment on parts of its gas and low-carbon activities.
- BP's net debt is falling sharply between the end of June and the end of September, according to the company.
- The final third-quarter figures have not yet been published.
- BP continues to combine oil, gas and low-carbon activities.
Left
Arguments An impairment on low-carbon activities can be seen as a warning that a market-driven energy transition is too vulnerable. Governments should protect long-term investment in clean energy and infrastructure from short-term fluctuations.
Values Climate responsibility, public investment and long-term certainty.
Consequences More support and regulation could accelerate the transition, but would require public funds and could distort the market.
Centre
Arguments The figures call for a measured combination of financial discipline and climate policy. Companies must adjust their portfolios to returns and risk, while governments provide predictable rules and a reliable investment climate.
Values Stability, affordability and gradual decarbonisation.
Consequences A phased approach can limit price shocks, but makes it harder to reduce emissions quickly enough.
Right
Arguments According to this approach, the impairment confirms that energy companies should not put unlimited capital into projects with uncertain returns. Oil and gas will remain necessary as long as consumers and industry depend on them.
Values Market forces, affordability and energy security.
Consequences A stronger focus on profitable activities can improve the financial position, but may delay investment in future clean energy.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The current expectations are based on BP's trading update as published by Reuters and are distinguished from the earlier half-year figures. The text makes clear which figures are still expectations and which have already been reported.
- confirmed BP expects a post-tax impairment of $3 billion to $4.5 billion. — Reuters quotes BP's third-quarter update. source
- confirmed BP expects net debt of $13.5 billion to $14.5 billion at the end of September. — This is stated in the trading update described by Reuters. source
- confirmed Net debt stood at $22.3 billion at the end of June. — Reuters compares the expected September position with the position at the end of June. source
- confirmed BP reported $3.9 billion in profit attributable to shareholders in the second quarter of 2026. — This is stated in BP's official SEC filing. source
Editor's note
The expected impairment, debt position and production forecast come from BP's trading update as described by Reuters. The final quarterly profit and the precise consequences for individual business units were not yet known on 13 October.Sources
- BP warns of up to $4.5 bln impairments in Q3, sees net debt down sharply — Reuters via Investing.com
- BP plc – Group results second quarter and first half 2026 — U.S. Securities and Exchange Commission
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