In 2020, BP set out its ambition to turn out to be a net zero company “by 2050 or sooner”.
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Blood pressure Shares fell on Tuesday after the corporate indicated it expected an impairment charge of as much as $2 billion within the second quarter and warned that lower refining margins would weigh on its results.
BP shares lost 2.6 percent in early market trading at 8:39 a.m. London time.
In an announcement on Tuesday, the corporate said it expects weak refining margins and weak oil trading results to weigh on its second-quarter results, which can be released on July 30. The damage is estimated at between $500 million and $700 million.
The energy company also expects to record impairments after taxes and contract provisions of between one and two billion dollars within the second quarter. This also includes costs related to BP’s ongoing review of the Gelsenkirchen refinery.
BP said it expects upstream production within the second quarter to be “broadly unchanged” from the previous quarter, adding that the corporate expects average results from gas marketing and gas trading.
The energy sector as an entire has performed “slightly” below average, said RBC analyst Biraj Borkhataria, adding: “Nevertheless, there are some ups and downs here, with stronger than expected upstream volumes offset by weakness elsewhere.”
BP is facing a transition period after former CEO Bernard Looney resigned lower than 4 years into the job due to undisclosed personal relationships with colleagues before taking office. The company appointed Murray Auchincloss as everlasting CEO in January.
The company is targeting money cost savings of no less than $2 billion by the tip of 2026. Weaker margins within the fuel sector and lower gas and oil prices negatively impacted BP’s ends in the primary quarter and led to a drop in profits.
Last week, rival energy giant Sleeve Similarly, the corporate announced that it expects an after-tax impairment charge of as much as $2 billion, primarily related to its Singapore and Rotterdam assets. It added that core gas trading and optimization performance within the second quarter is anticipated to be “seasonally” below the primary quarter of 2024.
