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BP PLC on Friday guided a pick-up in upstream output in the second quarter, but also expects results to be hit by weaker commodity prices and impairments. The London-based oil major said it now expects upstream production for the second quarter that ended June 30 to be higher against the first quarter, an improvement on its prior estimate for production to be broadly flat. In the gas & low carbon energy offering, realisations are expected to contribute a $100 million to $300 million hit, when compared to the first quarter, however. In oil production & operations, a chunkier hit in the range of $600 million to $800 million has been earmarked. The company noted ‘production mix effects and the price lags on BP’s production in the Gulf of America and the UAE’. Within the customers & products segment, BP anticipates ‘seasonally higher’ volumes plus stronger fuels margins in customers, and stronger realised refining margins around $300 million to $500 million in products. ‘There was a significantly higher level of turnaround activity’ in its products segment, the company noted. ‘The oil trading result is expected to be strong.’ BP noted the Brent crude oil price averaged $67.88 a barrel during the second quarter, down from $75.73 in the first. BP also warned of post-tax asset impairments in the range of $500 million to $1.5 billion ‘attributable across the segments’. The company said net debt at the end of the second quarter was slightly lower than at the end of the first. BP will publish its results for the second quarter on August 5. Shares in BP were up 1.8% at 395.90 pence in London on Friday morning. The stock is down 12% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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