Here is a summary of the trading statement from BP PLC for the second quarter of 2024
BP provided a trading statement for the second quarter of 2024, offering insights into its expected performance.
Upstream production is anticipated to remain relatively unchanged from the previous quarter, with flat oil production and a slight dip in gas & low carbon energy output.
In the gas & low carbon energy segment, realizations are projected to have a negative impact of around $0.1 billion due to declining non-Henry Hub natural gas marker prices.
On the other hand, realizations in the oil production & operations segment are expected to have a positive impact, ranging from $0.1 to $0.3 billion, influenced by price lags in the Gulf of Mexico and the UAE.
The customers and products segment is expected to benefit from stronger fuels margins, improved convenience performance, and seasonally higher volumes.
However, significantly lower realized refining margins, primarily due to weaker middle distillate margins and narrower North American heavy crude oil differentials, are anticipated to have a negative impact of $0.5 to $0.7 billion.
Additionally, a higher level of turnaround activity and a weak oil trading result compared to the strong performance in the first quarter are expected.
BP also anticipates post-tax adverse adjusting items, including asset impairments and onerous contract provisions, ranging from $1.0 to $2.0 billion in the second quarter.
The statement highlights that the information provided is subject to change and that actual results may vary. The final group results for the second quarter of 2024 are expected to be published on July 30, 2024.
Overall, BPs trading statement offers a preliminary outlook on its performance in the second quarter, with potential impacts on its underlying RC profit before interest and tax.