BP shares fell by about 4.5% at the beginning of today’s trading

BP shares fell on Tuesday after the company indicated that it expects to record a decline in value of up to $2 billion in the second quarter and warned of lower refining margins affecting its results.

According to CNBC, BP ​​shares fell by about 4.5% at the beginning of today’s trading.

The company said in a statement on Tuesday that it expects weak refining margins and oil trading performance to affect the second quarter results, scheduled to be issued on July 30. Losses are estimated at between $500 million and $700 million.

The energy company also expects to record asset impairment after taxes and contract provisions in the range of $1 billion to $2 billion in the second quarter. The strike includes accusations related to BP’s ongoing review of its Gelsenkirchen refinery in Germany.

Upstream production in the second quarter is now expected to be “broadly stable” compared to the previous quarter, BP said, adding that it expects an average result for gas marketing and trading.

BP is facing a transition period after former CEO Bernard Looney resigned after less than four years in office over undisclosed personal relationships with colleagues before he became CEO. The company appointed Murray Auchincloss as permanent CEO in January.

The company aims to save at least $2 billion in cash costs by the end of 2026. A weaker fuel margin and lower gas and oil prices weighed on BP’s results in the first quarter, leading to lower profits.