BP Plc announced it expects to book impairments of $1 billion related to its gas and low carbon energy business in the second quarter, as the energy giant refocuses on oil and gas.

The writedown reflects the company's strategic shift away from renewable investments toward its core fossil fuel operations. This move comes amid pressure from investors to prioritize returns over energy transition goals.

BP Plc's decision signals a broader industry trend where major energy companies are reassessing their low-carbon portfolios. The impairment charge will impact quarterly earnings but is non-cash in nature.

Analysts suggest the writedown may involve specific gas assets or low-carbon projects that no longer meet the company's revised return thresholds. The announcement follows similar moves by peers adjusting their transition strategies.