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BP Stock Drops After Company Warns of Impairments of Up to $2 Billion in Q4
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Main points
- British oil major BP said it expects to take impairment charges of $1 billion to $2 billion in the fourth quarter, sending its shares falling in premarket trading on Tuesday.
- BP also forecast “weak” refining margins in the fourth quarter.
- As of Monday’s close, BP shares were up 7% this year.
blood pressure(blood pressureShares of the company fell in premarket trading on Tuesday after the British oil giant said it expected to take an impairment charge of $1 billion to $2 billion in the fourth quarter.
The company said in its fourth-quarter trading update that “non-cash after-tax charges” were the responsibility of its various divisions.
The company also said it expects its upstream production to be lower than in the third quarter, when output was 2.4 million barrels of oil equivalent per day.
CEO Auchincloss recovers from medical procedure
BP said in a trading update on Tuesday that it expected “softer” margins at its refining operations in the fourth quarter.
BP also stated CEO Murray Auchincloss recently underwent a “planned medical procedure” and is “recovering well” and will return to the office in February.
BP’s U.S.-listed shares were down about 1.3% in premarket trading, but were up 7% this year through Monday’s close.
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