Overview
- BP said on Tuesday that reported upstream production will fall to 2.17–2.22 million barrels of oil equivalent per day in Q2 because of planned maintenance in the Gulf of America and supply disruptions in the Middle East.
- The group expects stronger oil realizations to lift underlying replacement cost profit by $1.8–2.1 billion and gas and low‑carbon realizations to add $500–700 million versus Q1.
- BP flagged about $1 billion of post‑tax impairments tied mainly to its gas and low‑carbon transition businesses and around $500 million of exploration write‑offs related largely to the sale of its Bay du Nord stake.
- Refinery throughput is forecast to fall to 1.445–1.475 million barrels per day after planned turnarounds and reduced volumes at Whiting, while net debt is seen at $22–23 billion after a €2.5 billion hybrid bond redemption and a $1.1 billion Gulf of Mexico settlement payment.
- Markets reacted to the update with shares up roughly 3% on a renewed oil price surge linked to US–Iran hostilities, and BP heads into full Q2 results on Aug. 4 under pressure over strategy and recent governance changes after the removal of former chairman Albert Manifold.