BP sees Q2 upstream production higher sequentially

BP (BP) reported upstream production in Q2 is now expected to be higher compared to the prior quarter, with production higher in oil production & operations, primarily in bpx energy, and slightly higher in gas and low carbon energy. In the gas & low carbon energy segment, realizations, compared to the prior quarter, are expected to have an impact in the range of ($0.1B) to ($0.3B), including changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result is expected to be average. In the oil production & operations segment, realizations, compared to the prior quarter, are expected to have an impact in the range of ($0.6B) to ($0.8B), including the production mix effects and the price lags on BP’s production in the Gulf of America and the UAE. In the customers and products segment, compared to the prior quarter, results are expected to be influenced by the following factors: Customers – seasonally higher volumes and stronger fuels margins. Products – stronger realized refining margins in the range of $0.3B to $0.5B. There was a significantly higher level of turnaround activity. The oil trading result is expected to be strong. Net debt at the end of the second quarter is expected to be slightly lower compared to the end of the first quarter. In other businesses and corporate, the underlying charge is expected to be similar to the prior quarter. The second quarter results are expected to include post-tax adjusting items relating to asset impairments in the range of $0.5B to $1.5B, attributable across the segments. These items are treated as adjusting items and excluded from underlying replacement cost profit.