BP(US:BP) Xin Lang Cai Jing·2026-01-14 08:51Core Viewpoint - BP is expected to record an asset impairment of up to $5 billion in Q4, following a recent CEO change aimed at reversing financial losses [1][4]. Group 1: Financial Performance and Strategy - The impairment primarily affects the natural gas and low-carbon business segments, with the announcement made ahead of the upcoming financial report [1][4]. - BP's oil trading business is projected to underperform for the second consecutive quarter, while crude oil production is expected to remain stable, and net debt has decreased [1][4]. - The company is divesting non-strategic assets to help reduce debt levels, which is critical in the current low oil price environment [1][4]. Group 2: Leadership Changes - Murray Auchincloss was abruptly dismissed amid pressure from activist shareholder Elliott Investment Management, following years of unsuccessful low-carbon investments [1][4]. - Albert Manifold, the new chairman, indicated that the pace of strategic adjustments was insufficient, leading to the appointment of Meg O'Neill from Woodside Energy as the new CEO [1][4][5]. Group 3: Market Conditions - BP's stock price increased by 10% last year, aligning closely with Shell's performance, making it one of the best-performing stocks among the top five oil giants [6]. - Despite a strong third-quarter performance driven by oil and gas production growth, the current global oil market appears to be leaning towards oversupply, posing risks to BP's transformation efforts [6]. - The price of Brent crude oil remains below the $70 per barrel threshold necessary for BP to achieve its transformation goals, despite geopolitical risks providing some price support [6].