BP flags $3–4.5bn in Q3 write-downs as refining margins strengthen

BP expects third-quarter post-tax write-downs of $3–4.5 billion, mainly associated with transition businesses within its gas and low-carbon energy segment, Rigzone reported, citing the company's trading update. The charges will be excluded from underlying replacement cost profit. BP did not identify the affected assets ahead of its July–September results, due on 30 October.

For its products business, BP forecast higher realised refining margins of $1.9–2.1 billion, offsetting lower refinery throughput of 1.38–1.41 million barrels a day. The company attributed the throughput decline to the sale of Germany's Gelsenkirchen refinery, partly counterbalanced by reduced planned turnaround and maintenance activity. Oil trading earnings are expected to remain broadly unchanged from the second quarter, according to the update reported by Rigzone.

The customer-facing business faces weaker fuel margins, higher base oil prices at Castrol and a smaller midstream contribution. Slightly higher seasonal volumes should provide a partial offset. Elsewhere, BP expects higher gas prices to support its gas and low-carbon energy segment, with gas marketing and trading earnings forecast to rise significantly from the preceding quarter.

The anticipated write-downs follow $1.69 billion in net impairments and losses on business and fixed-asset sales during the first half of 2026. Of that amount, BP assigned $525 million to energy transition assets without identifying individual businesses. Its equivalent full-year 2025 total was $6.04 billion, mostly linked to Lightsource BP and Archaea Energy, with offshore wind assets also contributing. BP began a sale process for its US biogas business, Archaea, in August 2026.

Despite the expected charges, BP forecasts quarter-end net debt of $13.5–14.5 billion, down from $22.3 billion at the end of June. It expects the combined total of net debt, hybrid bonds, leases and Gulf of America settlement liabilities to fall by roughly $9–10 billion quarter on quarter.

The update comes as chief executive Meg O'Neill continues BP's portfolio simplification programme, which includes a $20 billion divestment target by 2027. From next year, BP will report through upstream and downstream segments. Refining, terminals, pipelines, biofuels, aviation, hydrogen and Castrol will sit within downstream, alongside mobility and convenience, while supply, trading and shipping will continue serving both segments.