BP has reported a pre-tax impairment charge of $540m in the third quarter of 2023 related to its New York offshore wind projects.
BP and its partner Equinor continue to work on options for their US offshore wind projects – Empire 1 & 2 and Beacon Wind 1 – to “mitigate the effect” of inflationary pressures and permitting delays, the company stated in its third quarter results.
A filing on 7 June with the New York Public Services Commission (PSC) requesting to renegotiate the power purchase agreements associated with the three projects was rejected on 12 October.
BP and Equinor are assessing the impact of the decision on these sites and future development plans.
BP stated: “We have recognized a pre-tax impairment charge of $540m in the third quarter related to these assets.
“The pre-tax charge is recorded through equity-accounted earnings and is classified as an ‘other’ adjusting item.”
Total adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for BP’s gas and low carbon energy business was $2.8bn in third quarter of 2023 compared with $7.4bn in the same period 2022.
BP’s installed renewables capacity stood a 2.5GW in third quarter 2023, compared with 2GW in the same period 2022, while its total developed renewables to FID and renewables pipeline reached 50GW in third quarter 2023 compared with 31.5GW in third quarter 2022.