LONDON: BP expects lower realised refining margins and a weak oil trading to hurt its second-quarter earnings, the oil firm said on Tuesday.
The hit from refining margins is expected to be between US$500 million to US$700 million, it said in a statement.
The London-based company said it also expects to book impairments of US$1 billion to US$2 billion in the second quarter. This includes charges related to an ongoing review of its Gelsenkirchen refinery in Germany which was announced in March.
BP’s earnings snapshot comes after US oil major Exxon Mobil signalled on Monday that lower refining margins across the industry and lower natural gas prices would reduce profits in the second quarter.