jetcityimage/iStock Editorial via Getty Images
BP (NYSE:BP) -4.1% The company warned that weak crude trading and lower refining margins would hurt second-quarter profit, which is on track to see its biggest percentage drop since October 2023 in Tuesday trading.
The company also said it plans to write down the after-tax value of its assets by $1 billion to $2 billion. The impairment and one-time provisions include charges related to plans to curtail operations at its Gelsenkirchen refinery in Germany, as well as a loss of $500 million to $700 million in the second quarter due to a “significant decline in realized refining margins.”
Citi analysts cut their second-quarter earnings per share forecasts by 9% following the report, while Jefferies analysts said the update was a big boost for the company. Profits revised down by up to 20%.
BP (BP)”You need to prove your ability “In the day-to-day running of the business, today’s update is not helpful in that sense,” Russ Mould, investment director at AJ Bell, said, according to Reuters.
BP’s (BP) second-quarter gas trading guidance was disappointing, but The update was generally mixedRBC Capital analysts said:
“Given the increased production at Tangguh, we were modelling a strong outcome. [in Indonesia] “Like peers, other regions experienced outages, with average results disappointing relative to our expectations,” RBC wrote, but higher-than-expected upstream volume offset weakness elsewhere, and the bank lowered its second-quarter net profit forecast to $2.7 billion from $3.3 billion previously.
