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BP stated it might take an impairment of as much as $2bn within the second quarter stemming from a plan to cut back its refining operations in Germany.
The power firm stated on Tuesday that its second-quarter outcomes, as a result of be launched on the finish of the month, would come with “submit tax asset impairments and one-off contract provisions of between $1bn and $2bn”.
A mix of rising power prices and waning demand has hit BP’s operations in Germany, the place it had put the way forward for its Gelsenkirchen refinery underneath assessment.
BP additionally warned that decrease refining margins would additionally dent its earnings by between $500mn and $700mn.
Shares in BP slipped 3 per cent in early buying and selling on Tuesday.
The disclosure from BP comes after rival Shell final week warned it might take a writedown of as much as $1bn on a deliberate biofuel plant within the Netherlands, one of many group’s largest power transition tasks.
