BP Slides After Projecting Up To $2B in Q2 Impairment Charges

BP, and Exxon both say weak refining margins likely to hit earnings

• BP ADRs slid in premarket trading Tuesday after the energy giant said its second-quarter earnings will likely be impacted by lower refining margins.
• The company also expects to take an impairment charge of between $1 billion and $2 billion related to a review of one of its German refineries.
• Exxon also said refining margins would negatively impact its second-quarter earnings on Monday.

BP (BP) American depositary receipts fell in premarket trading Tuesday after the energy giant warned of lower refining margins and an impairment charge of up to $2 billion affecting its second-quarter results. BP anticipates a negative impact of $500 million to $700 million due to significantly lower refining margins. Exxon Mobil (XOM) also reported expected hits to its profits from lower refining margins and natural gas prices.