BP to Book $2 Billion Charge Due to German Refining Cut

BP to Book $2 Billion Charge Due to German Refining Cut

BP shares declined by 3% after the company revealed it expects to record an impairment of up to $2 billion in the second quarter, driven by lower refining margins and weak oil trading performance. The anticipated financial hit also includes post-tax asset impairments and contract provisions ranging from $1 billion to $2 billion. Part of this impairment, estimated between $500 million and $700 million, is related to BP's ongoing review of its Gelsenkirchen refinery in Germany.

The company's share price dropped to 458 pence at the start of trading, making it the largest faller on London's FTSE 100 index. Upstream production is expected to remain broadly flat compared to the previous quarter, with an average gas marketing and trading result anticipated. BP is currently undergoing a transition period following the resignation of former CEO Bernard Looney due to undisclosed personal relationships with colleagues. The firm has appointed Murray Auchincloss as the permanent CEO and continues its goal to become a net-zero company by 2050 or sooner.

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