BP has maintained much of its guidance for its full-year results despite operating under “significantly” lower refining margins, thanks to better-than-expected oil and upstream production and higher oil prices in the second quarter.
The FTSE 100 oil major, which in April surprised investors with a better-than-expected oil and gas trading performance in the first three months of the year, maintained much of its momentum in the second quarter.
In a trading update published this morning, the company said upstream production was flat compared to the prior quarter, and realised oil prices had a favourable impact on its bottom line.
However, BP was still hit by “significantly” lower realised refining margins—which had been unexpectedly healthy in the first quarter—due to narrower North American heavy crude oil differentials and weaker middle distillate margins.
The energy giant expects these to have an adverse impact of up to $0.7bn (£0.55bn).
BP also said its second-quarter results, expected on July 30, will include post-tax adverse adjustments around what it called “onerous contract provisions. These are expected to be between $1bn (£780m) and $2bn (£1.6bn).