BP Warns of Lower Earnings Amid Weak Refining Margins and Impairments

BP anticipates lower realised refining margins and weak oil trading affecting its second-quarter earnings. The impact includes a $500 million to $700 million hit from refining margins and impairments between $1 billion and $2 billion. This follows a general trend in the oil industry, with Exxon Mobil similarly affected.

BP announced on Tuesday that it anticipates lower realised refining margins and weak oil trading to negatively impact its second-quarter earnings.

The company projects that the hit from refining margins will range between $500 million to $700 million. Additionally, BP expects to record impairments of $1 billion to $2 billion in the second quarter, which includes charges related to an ongoing review of its Gelsenkirchen refinery in Germany, announced in March.

BP's earnings outlook follows Exxon Mobil's announcement on Monday, highlighting lower refining margins and natural gas prices impacting the industry, leading to reduced profits in the second quarter.

(With inputs from agencies.)