BP warns of weak oil trading, flags up to $5 billion impairment in low-carbon division
The energy company joins British peer Shell in warning that weak fourth-quarter oil-trading performance would drag on earnings.
BP warned its oil-trading performance would be weak and flagged an up to $5 billion impairment in its gas and low-carbon energy segment.
The London-based energy company joined British peer Shell which also warned last week that a weak fourth-quarter oil-trading performance would drag on earnings.
BP said it expects to book a $4 billion to $5 billion impairment, which is primarily due to a write-down in its gas and low-carbon energy segment.
The company is however continuing to make progress cutting net debt as part of a turnaround designed to strengthen the balance sheet and boost shareholder valuations.
Net debt at the end of the quarter is expected to be in the range of $22 billion to $23 billion compared with $26.1 billion at the end of the third quarter, it said.
Write to Adam Whittaker at adam.whittaker@wsj.com
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