BAKU, Azerbaijan, April 9. bp expects some challenges in oil production and operations sector in the first quarter of 2024, Trend reports.
According to the company, realizations compared to the previous quarter are expected to take a hit, with an estimated adverse impact ranging from $0.3 to $0.6 billion. This includes price lags on bp's production in the Gulf of Mexico and the UAE, as well as declines in non-Henry Hub natural gas marker prices.
As for the customers and products segment, several factors are poised to influence performance compared to the prior quarter. In terms of products, bp anticipates improving realized refining margins, which are expected to bring in a benefit ranging from $0.1 to $0.2 billion.
However, there's been a significantly lower level of turnaround activity compared to the previous quarter, partly offset by the impacts of the plant-wide power outage at the Whiting refinery on February 1, which resumed normal operations on March 15 after a phased start-up.
On the bright side, the oil trading result is expected to be strong, bouncing back from a weak performance in the fourth quarter of 2023, bp noted. However, in the customers segment, the company foresees significantly weaker fuel margins, seasonally lower volumes, and the absence of one-off positive effects that impacted the prior quarter.
Meanwhile, bp is expected to present its 1Q2024 results on May 7.