BP announced on Tuesday that it expects post‑tax impairments of between $3.0 billion and $4.5 billion for the third quarter ending 30 September, primarily arising from transitions in its gas and low‑carbon energy units. The company also indicated that net debt at the end of September will be in the range of $13.5 billion to $14.5 billion, a sharp decline from the $22.3 billion reported at the end of June. BP attributed the debt reduction to the redemption of hybrid securities, higher income‑tax payments, working‑capital releases and capital‑expenditure outlays during the quarter.
Upstream production guidance for Q3 was slightly narrowed to 2,190‑2,240 million barrels of oil equivalent per day (mboe/d), compared with 2,201 mboe/d in Q2, while the annual production outlook remains unchanged at 2,180‑2,270 mboe/d. The company realized an average Brent price of $96.99 per barrel in Q3, down from $103.85 per barrel in Q2. Refining margins for the quarter were stronger, ranging from $1.9 billion to $2.1 billion, with refinery throughput of 1,375‑1,405 million barrels per day.
BP said its gas marketing and trading results are expected to be "significantly higher" in Q3 than in Q2. The firm noted that the sharp increase in oil prices and refining margins this year has been driven by geopolitical tensions, including the U.S.–Iran conflict that constrained supplies and attacks on Russian facilities by Ukraine, trends that have benefited BP and its peers. Full Q3 earnings are scheduled for release on 30 October.