preloader icon

Apex Trader Funding (ATF) - News

BP Faces $3B Hit in 2Q24 Amid Refining Challenges & Low Demand

BP plc (NYSE: BP) is bracing for a substantial financial setback as it prepares to report its second-quarter 2024 results. The company anticipates a $3-billion (£2.3 billion) hit due to reduced demand for fuels, which has affected its refining business. BP has warned investors of significantly lower realized refining margins, which could slash its earnings by $500-$700 million for the quarter. This decline is attributed to weak diesel prices and narrower North American heavy crude oil differentials, which have particularly impacted BP's large refinery in Whiting, IN. Despite a high level of refinery maintenance in the quarter, the resumption of operations at the Whiting refinery is expected to provide an earnings uplift of $500 million. Adding to its financial challenges, BP plans to take a $2-billion write-down as it scales back its refining operations at the Gelsenkirchen refinery in Germany. The company aims to reduce operations by a third starting next year in response to weaker demand. This strategic move underscores BP's efforts to streamline its operations amid a challenging market environment. Despite these setbacks, investors expect BP's second-quarter underlying replacement cost profit, which the company defines as net income, to reach $3.13 billion, according to LSEG ...