LONDON (dpa-AFX) - British oil and gas major BP Plc (BP, BP.L) Tuesday announced that it expects up to $4.5 billion impairment charges in the third quarter and updated quarterly upstream production view. Further, the firm maintained fiscal 2026 production outlook.
Looking ahead for the third quarter 2026, the company said the results would include post-tax adjusting items relating to impairments in the range of $3.0 billion to 4.5 billion. These charges are primarily attributable to transition businesses in the gas & low carbon energy segment and are excluded from underlying replacement cost profit.
bp now expects reported upstream production between 2,190 and 2,240 mboe/d, compared with previous outlook between 2,100 and 2,250 mboe/d. In the sequential second quarter, upstream production was 2,201 mboe/d.
For the quarter, the company still projects significantly lower result, but slightly higher volumes compared to previous view of broadly flat volumes.
bp also sees weaker fuels margins and higher base oil prices in Castrol, as well as lower contribution from midstream.
The updated outlook mainly reflects seasonal maintenance recovery partly offset by bp's reduced equity interest in Latin America. Third quarter includes the impact of continued disruption in the Middle East and no impact from weather events in the Gulf of America.
Gas & low carbon energy is expected to be 775 to 795mboe/d, compared to 765mboe/d in the second quarter.
Oil production & operations is expected to be 1,415 to 1,445mboe/d, compared to 1,436mboe/d in the second quarter.
Further, for full-year 2026, BP continues to expect reported upstream production between 2,180 and 2,270 mboe/d versus 2,312 mboe/d in 2025.
Underlying upstream production for the year is still expected to be broadly flat compared to the prior year.
Further, total of net debt, hybrid bonds, leases and Gulf of America settlement liabilities are projected to reduce by around $9.0 to 10.0 billion compared with the second quarter.
The company is scheduled to publish third-quarter results on October 30.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
