FTSE 100 movers: BP slumps on update; utilities gain

London’s FTSE 100 was down 0.6% at 8,141.35 in afternoon trade on Tuesday.

BP slumped after saying it would take a hit of up to $2bn in the second quarter relating to asset impairments and onerous contract provisions, including charges relating to the ongoing review of its Gelsenkirchen refinery in Germany.

The oil and gas giant also forecast flat upstream production in the second quarter, while its gas marketing and trading result was also expected to be average following a strong result in the first quarter.

Russ Mould, investment director at AJ Bell, said: "A teaser ahead of second-quarter results later this month from BP suggests they won’t be a winner.

"The major issue is a big hit to refining margins, reflecting both market dynamics but also operational issues for the company. These factors also underpin guided impairments of $1 billion to $2 billion for the quarter. The broad range left the market with some uncertainty over how the second-quarter numbers will land.

"There are suggestions CEO Murray Auchincloss, who recently saw his stint as caretaker boss made permanent, will look to take costs out of the business and moderate net zero ambitions in order to prioritise boosting returns to help close the valuation gap on US rivals.

"However, alongside any major strategic shifts, BP needs to demonstrate competence in the day-to-day running of the business and today’s update doesn’t help in that sense."

On the upside, utilities were on the front foot, with Severn Trent, United Utilities and National Grid all up.

FTSE 100 - Risers

Severn Trent (SVT) 2,564.00p 2.52%
United Utilities Group (UU.) 1,047.00p 1.55%
CRH (CDI) (CRH) 5,884.00p 1.45%
Haleon (HLN) 330.30p 1.10%
Halma (HLMA) 2,670.00p 1.06%
Smith & Nephew (SN.) 1,073.00p 1.04%
Entain (ENT) 637.80p 0.95%
Pershing Square Holdings Ltd NPV (PSH) 4,204.00p 0.77%
National Grid (NG.) 934.60p 0.65%
Unilever (ULVR) 4,376.00p 0.64%

FTSE 100 - Fallers

BP (BP.) 455.15p -4.11%
Burberry Group (BRBY) 866.80p -3.50%
Frasers Group (FRAS) 839.00p -3.17%
Barclays (BARC) 216.50p -2.50%
Melrose Industries (MRO) 568.60p -2.37%
B&M European Value Retail S.A. (DI) (BME) 446.20p -2.26%
Marks & Spencer Group (MKS) 290.70p -2.15%
Smurfit Westrock (DI) (SWR) 3,500.00p -2.07%
Lloyds Banking Group (LLOY) 57.86p -1.97%
NATWEST GROUP (NWG) 323.00p -1.94%