BP p.l.c. Issues Q4 2025 Trading Update, Anticipates $4-5 Billion Impairment Charges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: Benzinga
- Production Stability: BP expects upstream production in Q4 2025 to remain largely unchanged from the previous quarter, with stable oil production offsetting declines in gas and low-carbon energy, demonstrating the company's resilience in an uncertain market.
- Price Impact: The company anticipates that price realizations in the gas and low-carbon segment will reduce quarterly results by approximately $0.1 billion to $0.3 billion, reflecting shifts in non-Henry Hub natural gas benchmarks, which could impact overall profitability.
- Impairment Charges: BP expects to incur post-tax adjusting charges of roughly $4 billion to $5 billion in Q4, primarily related to impairments in transition-focused businesses and equity-accounted entities, highlighting the challenges and risks the company faces in its low-carbon transition.
- Improved Financial Position: Net debt at quarter-end is projected to decrease to $22 billion to $23 billion, down from $26.1 billion in Q3, largely due to approximately $3.5 billion in divestment proceeds, indicating the company's efforts to optimize its capital structure.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BP is 84.26 USD with a low forecast of 6.38 USD and a high forecast of 503.69 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 37.700
Low
6.38
Averages
84.26
High
503.69
Current: 37.700
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. The Company's segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. Its gas business includes regions with upstream activities that produce natural gas, integrated gas and power, and gas trading. Its low carbon business includes solar, offshore and onshore wind, hydrogen and carbon capture and storage and power trading. Oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. Customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle charging, as well as Castrol, aviation and business to business and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. Other businesses & corporate segment comprises technology and bp ventures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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