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BP to take $2bn charge tied to German refining operations

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BP said it would take an impairment of up to $2bn in the second quarter stemming from a plan to scale back its refining operations in Germany.

The energy company said on Tuesday that its second-quarter results, due to be released at the end of the month, would include “post tax asset impairments and one-off contract provisions of between $1bn and $2bn”.

A combination of rising energy costs and waning demand has hit BP’s operations in Germany, where it had put the future of its Gelsenkirchen refinery under review.

BP also warned that lower refining margins would also dent its earnings by between $500mn and $700mn.

Shares in BP slipped 3 per cent in early trading on Tuesday.

The disclosure from BP comes after rival Shell last week warned it would take a writedown of up to $1bn on a planned biofuel plant in the Netherlands, one of the group’s biggest energy transition projects.

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