BP (BP, Financial) has announced that its fourth-quarter earnings will be affected by decreased oil and gas production, as well as reduced refining margins and trading impacts. The company has also postponed its Investor Day due to CEO Murray Auchincloss undergoing a medical procedure. He is expected to return to work in February, and the event has been rescheduled for February 26 in London, instead of the original February 11 date in New York. During the event, BP will release its fourth-quarter and 2024 fiscal year results.
In its trading update, BP indicated that its fourth-quarter upstream production is expected to be lower than the 2.4 million barrels of oil equivalent per day reported in the third quarter. The average Brent crude oil price for the fourth quarter was $74.73 per barrel, down from $80.34 per barrel in the previous quarter. Additionally, the average refining market margin decreased to $13.10 per barrel, a decline of nearly $3.5 per barrel from the prior quarter.
Despite these challenges, BP anticipates a slight increase in natural gas prices, which may somewhat offset the financial impact of lower oil prices. The company expects a reduction in refining margins and the effects of turnaround and maintenance activities to decrease profits by up to $300 million quarter-over-quarter, with further reductions in the oil production and operations segment by $200 million to $400 million.
BP also revised its expected foreign exchange loss-related expenses to approximately $6 billion, significantly higher than the previous guidance of $300 million to $400 million.
