BP expects post-tax impairments of $3.0 billion to $4.5 billion in the third quarter, tied to its gas and low carbon energy units. The company also expects net debt to fall sharply from end-June. Full results are due on October 30.
BP expects net impairments of up to $4.5 billion in the third quarter on its gas and low-carbon units. At the same time, the company flagged a sharp reduction in its net debt.
Impairments tied to gas and low carbon units
The oil and gas giant said the post-tax impairments will run from $3.0 billion to $4.5 billion for the three months to September 30. It linked the charges to transitions in the two units.
BP expects net debt to fall from $22.3 billion
In its third-quarter trading update, BP said it expects net debt at end-September in a range of $13.5 billion to $14.5 billion, against $22.3 billion at end-June. A redemption of hybrid securities, higher income taxes paid, working capital releases and capital expenditure drove the drop.
Production, prices and refining
BP slightly narrowed its Q3 upstream production guidance to 2,190 to 2,240 mboe/d, compared with 2,201 mboe/d in the second quarter. It maintained its annual guidance of 2,180 to 2,270 mboe/d.
The company realized average Brent prices of $96.99 a barrel in Q3, versus $103.85 a barrel in Q2. Realized refining margins were stronger, in the range of $1.9 billion to $2.1 billion.
BP has benefited from a sharp increase in oil prices and refining margins this year, as the U.S.-Iran war dented supplies and also hit refining facilities in the Middle East. The refinery shortage was furthered by Ukrainian attacks on Russian facilities in recent months.
The company will release full Q3 earnings on October 30. It said its gas marketing and trading result is expected to be "significantly higher" in Q3 than in Q2, according to the trading update.
Source: Investing.com
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