BP anticipates a substantial financial impact of nearly $3 billion due to decreased fuel demand affecting its refining sector's performance for April through June. The energy titan has cautioned that reduced realised refining margins could lead to earnings loss between $500 million and $700 million for the quarter.
The company also projects a $2 billion write-down from plans to reduce its operations at the Gelsenkirchen refinery in Germany by one-third starting next year, as a consequence of declining demand. This financial challenge coincides with broader issues impacting the global refining industry; ExxonMobil recently indicated that diminished margins would negatively influence their second-quarter earnings between $1.1 billion and $1.5 billion.
BP forecasts a weaker performance in its oil trading segment, while gas trading is expected to remain consistent. The announcement saw BP's share value decrease by over 3.5% on Tuesday morning.
In recent developments, it was reported that Bernard Looney, the former CEO of BP who resigned last year for not fully disclosing professional relationships with colleagues to the board, engaged in discussions with key figures from the United Arab Emirates concerning potential private investment to establish a new venture. These talks were confirmed by The Financial Times but did not involve negotiations with Abu Dhabi National Oil Company (Adnoc).
Read next
Ryanair plane had only six minutes of fuel upon Manchester landing, records show
Flight Narrowly Avoids Disaster After Storm Diversion
An inquiry has been launched after a Ryanair flight, struggling against severe winds during storm Amy last week, landed at Manchester Airport with only six minutes’ worth of fuel remaining.
The aircraft had been transporting passengers from Pisa, Italy, to Prestwick, Scotland, on
"Qantas customer data for 5 million exposed as hackers release info post-ransom deadline"
Hackers Leak Personal Data of 5 Million Qantas Customers on Dark Web
A cybercriminal group has released personal records of 5 million Qantas customers on the dark web after the airline did not meet their ransom demand.
The breach is part of a larger global incident affecting over 40 companies,
Investors flee record-high UK stocks as EU set to hike steel tariffs
Investors Withdraw Record Sums from Equity Funds Amid High Market Valuations
Data reveals that investors in the UK have withdrawn an unprecedented amount of money from equity funds over the past three months, driven by concerns over soaring stock market valuations.
According to the latest figures from Calastone, the largest