BP warned it expected to take writedowns of up to $5bn (£3.7bn) on its gas and low-carbon energy divisions, while also saying oil trading had been weak in the final quarter.
The oil major joined FTSE 100 rival Shell after it also warned last week of weak trading due to falling crude costs.
BP said Brent crude oil prices averaged $63.73 a barrel in the fourth quarter of last year, compared with $69.13 a barrel in the previous three months.
Oil prices have plummeted in recent weeks, in part because U.S. President Donald Trump ousted and detained Venezuela’s leader and claimed ownership of the region’s crude, raising concerns about a supply glut.
In an update ahead of full-year results, BP also said it expected to book an impairment of $4bn (£3bn) to $5bn (£3.7bn) on its so-called transformation business, mainly related to its natural gas and low-carbon energy divisions.
But the company said it had made further progress in reducing debt, with its net debt falling to $22bn to $23bn (£16.4bn to £17.1bn) by the end of 2025 from $26.1bn (£19.4bn) at the end of September.
Last month, the company unexpectedly appointed Woodside Energy boss Meg O’Neill as its new chief executive, with Murray Auchincloss stepping down after less than two years in the role.
Ms O’Neill will take up the role on April 1, with Carol Howle, currently BP’s executive vice-president for supply, trading and transportation, temporarily serving as chief executive until the new boss joins.
Ms O’Neill’s appointment makes history as she will be the first woman to run BP, the first woman to lead a top five global oil company and the first outsider to hold the position at BP.
BP shares fell 1% in early trading on Wednesday following the latest update.
