BP Warns of 4th Quarter Profit Hit as Production and Refining Margins Fall

Logo of British Petrol BP is seen at a petrol station in Pienkow, Poland, June 8, 2022. REUTERS/Kacper Pempel/File Photo
Logo of British Petrol BP is seen at a petrol station in Pienkow, Poland, June 8, 2022. REUTERS/Kacper Pempel/File Photo
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BP Warns of 4th Quarter Profit Hit as Production and Refining Margins Fall

Logo of British Petrol BP is seen at a petrol station in Pienkow, Poland, June 8, 2022. REUTERS/Kacper Pempel/File Photo
Logo of British Petrol BP is seen at a petrol station in Pienkow, Poland, June 8, 2022. REUTERS/Kacper Pempel/File Photo

BP warned on Tuesday that lower production, weak refining margins and sluggish trading would see its profit in the fourth quarter of 2024 fall from the previous three months.
Since taking the helm a year ago, CEO Murray Auchincloss has scaled back the firm's energy transition strategy in an effort to boost profits and regain investor confidence as BP's share lags behind its competitors, Reuters reported.
A capital markets event previously scheduled for Feb. 11 in New York will instead take place on Feb. 26 in London, BP said, as Auchincloss is recovering from a planned medical procedure.
BP said the drop in refining margins and a higher impact from turnaround and maintenance activity would result in a quarter-on-quarter drop in profit of up to $300 million, while realizations in its oil production and operations unit could lead to a further reduction of $200 million to $400 million. It also expects a drop in upstream production.
The company's third quarter underlying replacement cost profit, the company's definition of net income, was $2.27 billion, already the weakest since the fourth quarter of 2020, when profits collapsed during the pandemic.
Global demand for gasoline and diesel has fallen short of expectations, while the launch of new oil refineries in Asia and Africa has resulted in oversupply.
Last week, Shell warned of weakness across multiple divisions, while Exxon Mobil signaled a $1.75 billion drop in fourth-quarter earnings.
BP, which will release fourth quarter results on Feb. 11, expects its net debt at end-December to have fallen from the end of the previous quarter. Exploration write-offs are seen falling by $100 million to $200 million.



Saudi Fund for Development, Italy's CDP Sign MoU for Development Collaboration

The MoU focuses on fostering the growth of development sectors. SPA
The MoU focuses on fostering the growth of development sectors. SPA
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Saudi Fund for Development, Italy's CDP Sign MoU for Development Collaboration

The MoU focuses on fostering the growth of development sectors. SPA
The MoU focuses on fostering the growth of development sectors. SPA

CEO of the Saudi Fund for Development Sultan bin Abdulrahman Al-Marshad signed a memorandum of understanding (MoU) for development cooperation with CEO and General Manager of Italy's National Promotional Institution, Cassa Depositi e Prestiti (CDP), Dario Scannapieco.

The Minister of Investment, Eng. Khalid Al-Falih, attended the signing ceremony held in AlUla on Sunday.

The MoU aims to establish and enhance cooperation in social and economic development shared between the two countries, facilitating the exchange of expertise.

It also focuses on fostering the growth of development sectors that contribute to sustainable development goals (SDGs) and global development efforts, promoting best practices in joint financing and maximizing developmental impact for the growth and prosperity of developing countries worldwide.