BP (NYSE:BP) shares experienced a decline in London trading, dropping 3.5% to 458.15 pence, following the company's announcement warning of "significantly lower" refining margins.

The energy giant also forecasted a substantial writedown ranging from $1 billion to $2 billion on the value of a plant in Germany.

According to a statement released by BP on Tuesday, the company anticipates a negative impact on its second-quarter earnings from oil products, estimating losses between $500 million to $700 million.

This downturn is attributed to reduced profits from fuel production, such as diesel, and heightened maintenance activities.

Additionally, BP anticipates weak performance in oil trading for the quarter.