BP has warned that its second quarter results, due next month, are likely to be affected by a downturn in oil and gas prices.
The average price of crude oil was recorded at $67.9 per barrel over the quarter, a decrease from $75.7 per barrel in the previous three months, as reported by .
"In the gas and low carbon energy segment, realisations compared to the prior quarter, are expected to have an impact in the range of $0.1bn to $0.3bn," BP announced on Friday.
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The company also anticipates that realisations in its oil production and operations sector will influence its financials by about $0.6 to $0.8bn, factoring in price lags affecting BP's output in the Gulf of America and the UAE.
Asset impairments are projected to cost the firm between $0.5bn and $1.5bn in the upcoming second quarter results.
BP forecasts higher production
Despite these challenges, BP's shares saw an uptick of more than two per cent in early trading, buoyed by predictions of increased production quarter-on-quarter and a reported reduction in net debt, which stood at $27bn at the end of the last quarter.
For the second quarter, BP is expecting an average performance in gas marketing and trading, while forecasting a robust outcome for oil trading.
This news arrives amidst comments from ministers and officials from various OPEC countries earlier in the week, suggesting that global markets are "thirsty" for additional oil supply.
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Throughout the year, BP has been under considerable pressure to improve its lagging share price, leading to a strategic shift back towards oil and gas, much to the dismay of environmentally focused investors.
The group experienced a significant shareholder rebellion at its annual general meeting in April, marking the largest protest vote against the chair of a FTSE 100 company in five years.
Shares have fallen approximately 1.5 per cent this year to date.