In 2020, BP set out its ambition to become a net-zero emissions company “by 2050 or earlier.”
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blood pressure The company’s shares fell on Tuesday after it said it expected to take impairments of up to $2 billion in the second quarter and warned that lower refining margins would hurt its results.
BP shares fell 2.6% in early trading at 08:39 am London time.
The company said in a statement on Tuesday that it expects weak refining profits and oil trading performance to impact its second-quarter results, due to be reported on July 30. Box office revenue is expected to be between $500 million and $700 million.
The energy company also expects after-tax asset impairments and contract reserves to be $1 billion to $2 billion in the second quarter. The crackdown includes allegations related to BP’s ongoing review of its Gelsenkirchen refinery in Germany.
BP said it now expects second-quarter upstream production to be “broadly in line” with the previous quarter, adding that it expects natural gas marketing and trading results to be average.
RBC analyst Biraj Borkhataria said overall energy industry performance was “marginally” lagging, adding, “Still, there were some puts, with upstream production stronger than expected, offset by weakness elsewhere.”
Former BP Chief Executive Bernard Looney is facing a transition period less than four years after he resigned as chief executive over undisclosed personal relationships with colleagues. The company named Murray Auchincloss as permanent chief executive in January.
The company aims to save at least $2 billion in cash costs by the end of 2026.
Last week, rival energy giant shell It also announced an estimated after-tax loss of up to US$2 billion, mainly related to its Singapore and Rotterdam plants. The company added that trading and optimization results for its core natural gas segment in the second quarter are expected to be lower than in the first quarter of 2024 “due to seasonal factors.”
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