BP expects lower realised refining margins and a weak oil trading to hurt its second-quarter earnings, the oil firm said on Tuesday.

The hit from refining margins is expected to be between $500 million to $700 million, it said in a statement.

The London-based company said it also expects to book impairments of $1 billion to $2 billion in the second quarter. This includes charges related to an ongoing review of its Gelsenkirchen refinery in Germany which was announced in March.

BP’s earnings snapshot comes after U.S. oil major Exxon Mobil XOM.N signalled on Monday that lower refining margins across the industry and lower natural gas prices would reduce profits in the second quarter.
Source: Reuters (Reporting by Arunima Kumar in Bengaluru; editing by Jason Neely)