BP has announced an anticipated decline in earnings of up to $600 million, attributed to diminishing margins in its refinery operations and a decrease in sales of gasoline and oil products.

The prominent energy company listed on the FTSE 100 informed its investors that the average margins for refining have decreased from $20.6 per barrel in the second quarter to $16.5 per barrel in the third quarter. Additionally, a anticipated decrease in fuel sales is projected to impact earnings by $300 million.

Furthermore, BP foresees net debt exceeding previous estimates as the revenue from asset sales will be recorded in the fourth quarter of the fiscal year. Consequently, the company’s stock price fell by ₵, or 0.06 percent, settling at 410₵.

Murray Auchincloss, the current chief executive of BP, has moved away from the net-zero strategy established by his predecessor Bernard Looney. Recent reports suggest Auchincloss is likely to abandon an ambitious goal aimed at reducing oil and gas output by the end of the decade. Moreover, BP has declared its withdrawal from the onshore wind sector in the United States, following a substantial pre-tax writedown of $1.1 billion on such projects last year.

Auchincloss is focused on restoring investor confidence following Looney’s unexpected resignation last year and aims to align BP’s market value more closely with its competitors in the oil and gas industry. The Canadian executive has outlined initiatives to reduce expenses by at least $2 billion by the end of 2026 and indicated that external hiring would be limited to critical positions such as frontline roles, well-site leaders, and other safety-sensitive jobs.

Investment analyst Dan Coatsworth from AJ Bell noted that BP’s shares have not kept pace with Shell and other American counterparts. He remarked, “This period includes a time when oil prices were declining; however, the recent unrest in the Middle East has resulted in a rebound for crude prices. If this trend continues, it could positively influence BP’s performance in the final quarter of the year.”

“Auchincloss, who officially took over leadership at the beginning of the year, must demonstrate to the market that he has a strategic long-term vision rather than merely discarding the previous one,” Coatsworth added.

In related news, Brent crude, the global oil standard, surged above $80 per barrel for the first time since August earlier this week amid escalating conflicts in the Middle East. The price spike followed President Biden’s remarks regarding possible Israeli military actions targeting Iran’s oil infrastructure.