Now sees Q2 upstream production flat vs Q1 (Il Sole 24 Ore Radiocor) - London, 09 Jul - The UK energy group BP said that its second-quarter results are expected to show post tax adverse adjusting items relating to asset impairments and associated onerous contract provisions in the range of 1.0-2.0 billion dollars, including charges relating to the ongoing review of the Gelsenkirchen refinery in Germany.

It expects that significantly lower realized refining margins will have an adverse impact in the range of 0.5-0.7 billion dollars mainly relating to weaker middle distillate margins and narrower North American heavy crude oil differentials, and a higher level of turnaround activity, partially offset by the absence of the first quarter Whiting refinery outage of around 0.5 billion dollars.

The oil trading result is expected to be weak following a strong result in the first quarter.

In upstream, output is now expected to be broadly flat in the second quarter compared to the first, with production broadly flat in oil production & operations and slightly lower in gas & low carbon energy.

In the gas & low carbon energy segment, realizations are expected to have an adverse impact of around 0.1 billion dollars compared with the first quarter, including declines in non-Henry Hub natural gas marker prices. The gas marketing and trading result is expected to be average following a strong result in the first quarter.

In the oil production & operations segment, realizations are expected to have a favourable impact in the range of 0.1-0.3 billion dollars compared with the first quarter, including the impact of price lags on BP's production in the Gulf of Mexico and the UAE.

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(RADIOCOR) 09-07-24 08:38:20 (0160) 5 NNNN