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BP flags $3-4.5 billion in impairments for third quarter - Finance news and analysis from Global Banking & Finance Review
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BP flags $3-4.5 billion in impairments for third quarter

Published by Global Banking & Finance Review

Posted on October 13, 2026

2 min read

· Last updated: October 13, 2026

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BP Signals $3–4.5 Billion in Third Quarter Impairments Amid Refining Gains

BP’s Third Quarter Financial Overview and Market Context

By Stephanie Kelly and Shadia Nasralla

Impairments in Gas and Low-Carbon Energy Segment

LONDON, Oct 13 (Reuters) - BP expects to report $3 billion to $4.5 billion of impairments in its third quarter results, relating to its gas and low-carbon energy segment, the oil major said on Tuesday.

Previous Write-Downs in Low-Carbon Business

This is the second time in a year that the British firm has booked large write-downs in its low-carbon business, previously flagging $4 billion to $5 billion in impairments in January.

BP’s Response to Impairment Queries

BP declined on Tuesday to comment further on details of the impairment. 

Refining Margins and Methodology Changes

The refining indicator margin for the quarter is due to be $46.7 per barrel, versus $29.6 per barrel in the second quarter. Realised refining margins are expected to be in the range of $1.9 billion to $2.1 billion. 

Changes in Refining Margin Methodology

BP in recent years has changed its methodology for refining margins. 

Market Factors Impacting BP’s Performance

The US-Israeli war on Iran has disrupted global oil supplies, driving up prices and helping majors book stronger profits. 

Outlook for Gas Marketing, Trading, and Upstream Production

BP expects its gas marketing and trading result to be significantly higher in the third quarter compared with the previous quarter.

Upstream Production Forecast

It expects its upstream production to be 2.19 million to 2.24 million barrels of oil equivalent per day, versus about 2.2 million barrels of oil equivalent per day in the previous quarter.

(Reporting by Stephanie Kelly and Shadia Nasralla; Editing by Kirsten Donovan)

Key Takeaways

  • BP is flagging $3–4.5 billion in impairments in Q3 for its gas & low‑carbon energy segment, the second major write‑down in the past 12 months (following $4–5 billion in January) (bp-com-test3.navitas.bpglobal.com).
  • Refining margins surged to $46.7/barrel from $29.6 in Q2, boosting realised refining margins to $1.9–2.1 billion (sec.gov).
  • BP continues to scale back its transition investments: annual spending cut from ~$5 billion to $1.5–2 billion, with under $0.8 billion allocated to low‑carbon energy (patronuspartners.com).

References

Frequently Asked Questions

What amount of impairments does BP expect for the third quarter?
BP expects to report $3 billion to $4.5 billion of impairments in its third quarter results.
Which BP segment are the impairments related to?
The impairments relate to BP's gas and low-carbon energy segment.
How do BP's refining margins for Q3 compare to Q2?
BP's refining indicator margin for Q3 is expected to be $46.7 per barrel, up from $29.6 per barrel in Q2.
Why are oil prices higher in the third quarter?
Oil prices are higher due to the US-Israeli war on Iran causing disruptions in global oil supplies.

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