BP shares drop 3% after warning of up to $2 billion impairment, weak refining margins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 09 2024
0mins
Source: CNBC
- BP's Financial Outlook: BP expects to post an impairment of up to $2 billion in the second quarter due to weak refining margins and lower oil trading performance.
- Market Reaction: BP shares dropped by 2.6% in early market trading following the announcement.
- Anticipated Charges: The company also foresees post-tax asset impairments and contract provisions ranging from $1 billion to $2 billion in the second quarter.
- Operational Expectations: BP predicts that upstream production will be "broadly flat" compared to the previous quarter and anticipates an average gas marketing and trading result.
- Industry Trends: Both BP and Shell are facing challenges in the energy sector, with Shell also expecting a post-tax impairment hit of up to $2 billion mainly linked to its Singapore and Rotterdam plants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
