BP PLC (LSE:BP.) shares rose 2% in afternoon trading after the energy group indicated that its second-quarter numbers and outlook were less bleak than many had feared, despite continued underperformance.
Although BP warned of lower earnings in its trading update, with profits from its oil and gas divisions set to fall by up to $800 million and $300 million respectively, the market took encouragement from stronger oil trading and a 40% jump in refining margins.
Dan Coatsworth, analyst at AJ Bell, said: “A big slump in the oil price following Trump’s Liberation Day tariff plan has done no favours to BP.
"It has flagged up to $1.5 billion of potential asset impairments, despite ramping up production in the second quarter.
"The market doesn’t seem too fussed, instead focusing on good news from its oil trading business and higher refining margins.”
Coatsworth added that BP’s shift back to oil and gas means it now needs to prove it can deliver, with any negative surprises likely to fuel ongoing takeover speculation.
The group is under pressure to boost performance and has pledged to sell $20bn of assets by 2027.
The shares rose 8.25p to 397p.