BP expects as much as $2 billion impairment in 2Q on weak refining margins

BP shares dropped on Tuesday after the agency flagged it expects to submit an impairment of as much as $2 billion within the second quarter and warned of decrease refining margins weighing on its outcomes.

BP shares dropped 3% in early market buying and selling at 08:18 a.m. London time.

In a Tuesday assertion, the corporate stated it anticipates weak refining margins and oil buying and selling efficiency will weigh on its second-quarter outcomes, due out on 30 July. The hit is estimated between $500 million to $700 million.

The vitality agency additionally expects to report post-tax asset impairments and contract provisions within the vary of $1 billon to $2 billion within the second quarter. The hit consists of prices regarding BP’s ongoing evaluate of its Gelsenkirchen refinery in Germany.

Upstream manufacturing within the second quarter is now anticipated to be “broadly flat” in comparison with the earlier quarter, BP stated, including that it anticipates a median fuel advertising and marketing and buying and selling end result.

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