BP Anticipates Profit Dip Amid Refining Challenges

BP warns of a potential dip in fourth-quarter profits due to lower production, weak refining margins, and sluggish trading. CEO Murray Auchincloss is refocusing on boosting profits, adjusting energy transition plans. Profit expectations are up to $700 million lower, amid global demand challenges and new refinery outputs.

BP has issued a warning that its fourth-quarter profits in 2024 could see a decline due to factors like lower production levels, weak refining margins, and sluggish trading activities.

Since taking leadership a year ago, CEO Murray Auchincloss has scaled back BP's energy transition efforts to focus more on boosting profitability and improving investor confidence, with BP’s share performance trailing competitors.

Market challenges such as the introduction of new oil refineries in Asia and Africa leading to oversupply and lower-than-expected demand for gasoline and diesel further compound BP's financial outlook.

(With inputs from agencies.)