(World Oil) – bp said it expects to record $4 billion to $5 billion in post-tax impairments in the fourth quarter of 2025, largely tied to its energy transition businesses, according to a trading statement released ahead of its full-year results.

The company said the writedowns, which will be excluded from underlying replacement cost profit, are primarily linked to its gas and low carbon energy segment, including impacts within equity-accounted entities.

bp expects reported upstream production in the fourth quarter to be broadly flat compared with the prior quarter, with stable oil output offset by lower production in gas and low carbon energy. Lower realized prices are expected to weigh on results across both upstream segments.

In its downstream businesses, bp said customer volumes were seasonally lower, while refining margins improved modestly, partially offset by higher maintenance activity and temporary capacity losses following a fire at the Whiting refinery. Oil trading results are expected to be weak.

The company also pointed to continued balance sheet progress, with net debt expected to decline to between $22 billion and $23 billion at year-end, supported by divestment proceeds exceeding earlier guidance.

bp said commodity prices weakened during the quarter, with Brent crude averaging below the prior quarter, while U.S. natural gas prices increased. The company will publish its full fourth-quarter and full-year 2025 results on Feb. 10, 2026.