BP expects stronger oil and gas prices, robust oil trading, and higher refining margins to lift second-quarter earnings, the British energy major said on Tuesday.

The company expects stronger prices to add a $1.8 billion to $2.1 billion boost to earnings in its oil production and operations business compared with the first quarter, while its gas and low-carbon energy segment should benefit by a further $500 million to $700 million.

Impairments and Debt

At the same time, second-quarter results are expected to include around $1 billion of impairments, primarily related to its lower-carbon energy transition businesses. BP declined to give further details.

BP said net debt stood at $22 billion to $23 billion at end-June, down from $25.3 billion at the end of March, with a target to reduce this further to $14 billion to $18 billion by the end of next year.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.