BP shares fell 2.7% after it warned of weak profitability in the oil refining sector and expected a decline in the value of a German refinery.

Weak refining profitability is due to lower profit margins for products such as diesel and high levels of refinery maintenance.

BP expects this to be reflected in its profits from oil products in the second quarter, reaching between $500 million and $700 million, and the company also expected weak results from oil trading.

This decline comes at a time when European refiners are facing strong competition from fuel imports from the Middle East and Asia, as these regions are witnessing growth in refining capacity.

BP also announced a reduction in the value of the Gelsenkirchen refinery in Germany by an amount ranging between one and two billion dollars.

This decision is linked to the company’s review of its operations in Germany, where it intends to reduce refining due to high costs and low demand for fuel.

Despite the challenges in the refining sector, BP expects the exploration and production business to be largely stable in the second quarter, while it expects that the performance of the gas marketing and trading business will be average.