In 2020, BP set out its ambition to become a net-zero emissions company “by 2050 or sooner”.
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BB Shares of Abu Dhabi National Oil Co. (ADNOC) fell on Tuesday after the company said it expects to post a $2 billion loss in the second quarter and warned that lower refining margins could weigh on its results.
BP shares were down 2.6% in early market trading at 08:39 a.m. London time.
In a statement Tuesday, the company said it expects weak refining margins and oil trading performance to impact its second-quarter results, due out on July 30. The loss is estimated at between $500 million and $700 million.
The company also expects to record a post-tax loss on assets and contract provisions in the range of $1 billion to $2 billion in the second quarter. The losses include costs related to BP’s ongoing review of its Gelsenkirchen refinery in Germany.
BP said upstream production in the second quarter was now expected to be “broadly flat” compared to the previous quarter, adding that it expected a moderate result for gas marketing and trading.
The energy sector overall has performed “modestly,” said RBC analyst Biraj Purkataria, adding that “there is, however, some buying and selling here, with stronger-than-expected upstream volumes offset by weakness elsewhere.”
BP is facing a transition period after former chief executive Bernard Looney resigned after less than four years in the job over undisclosed personal relationships with colleagues before he took over as CEO. The company appointed Murray Auchincloss as permanent chief executive in January.
The company is targeting cash cost savings of at least $2 billion by the end of 2026. Weak fuel margins and lower gas and oil prices weighed on BP's first-quarter results, leading to lower earnings.
Last week, the rival energy giant announced coincidence The company also said it expects to record a post-tax loss of up to $2 billion, primarily related to its plants in Singapore and Rotterdam. It added that its second-quarter performance in terms of trading and improvement in the core gas division is expected to be lower than in the first quarter of 2024 “due to seasonality.”
