BP warns of impact on earnings due to weak refining margins and lower production

Unlock Editor’s Digest for free

FT editor Roula Khalaf selects her favorite stories in this weekly newsletter.

BP said its third-quarter earnings would be lower than expected when it reports in late October on weak margins at its refineries, lower production from its oil fields and higher exploration write-offs.

Giacomo Romeo, an analyst at Jefferies, said he expected consensus earnings to now be about 10 percent lower than the $2.3 billion previously forecast.

BP said it had taken hits of up to $1.1 billion in its businesses and that net debt would be higher than expected, in part because some divestment revenue would fall in the next quarter.

The oil major’s share price has lagged its peers and is down more than 12% in the year to date.

This is a developing story