BP has revealed that it expects its Q2 results next month to be impacted by lower oil and gas prices.

The oil and gas giant said its net debt at the end of Q2 is also expected to be slightly lower compared to the end of Q1.

In a trading statement to the markets, BP stated that its Q2 results are expected to include post-tax adjusting items relating to asset impairments in the range of $500m to $1.5bn, which it said would be attributable across the segments. The company said these items would be treated as adjusting items and excluded from underlying replacement cost profit.

Despite the warning, however, BP’s share price has risen by 2% off the back of the trading update.

Investment analyst at AJ Bell, Dan Coatsworth, commented: “A big slump in the oil price following Trump’s Liberation Day tariff plan has done no favours to BP. It has flagged up to $1.5bn of potential asset impairments, despite ramping up production in the second quarter.

“The market doesn’t seem too fussed, instead focusing on good news from its oil trading business and higher refining margins.

“BP is in a new era of focusing more on oil and gas and less on renewables, so it needs to prove to the market that the business is doing the best it can.

“Takeover rumours aren’t going away and each pocket of bad news in its results, no matter how small, will stoke the fires and drive speculation that it remains vulnerable to a bid.”

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