BP is preparing to take a hit of almost $3bn in its results for April to June as lower demand for fuels leads to woes within the company’s oil refining business..
It also expects to take a $2bn write down resulting from a plan to scale back its refining operations at its Gelsenkirchen refinery in Germany by a third from next year in response to weaker demand.
The looming financial hit comes amid wider pressures facing the global refining business. The US oil company ExxonMobil warned investors this week that lower refining margins would have a negative impact on second-quarter profit of between $1.1bn and $1.5bn.
BP added that its oil trading business was “expected to be weak”, while gas trading was expected to be “average”. The update caused BP shares to drop by more than 3.5% to 457.76p a share on Tuesday morning.
Full story BP to take hit of nearly $3bn amid oil refining woes | BP | The Guardian
Share this:
