BP ( BP ) American depositary receipts (ADRs ) fell in premarket trading Tuesday after the energy giant said that it expects lower refining margins and an impairment charge of up to $2 billion will impact its second-quarter results.

The British oil and gas company said Tuesday that “significantly lower realized refining margins” are projected to have a negative impact between $500 million to $700 million when it reports second-quarter earnings at the end of the month.

BP Joins Exxon in Warning About Refining Margins

BP, which expects to take an impairment charge between $1 billion and $2 billion related to a review of one of its German refineries, is not the only one in the industry warning about potential hits to second-quarter results.

Exxon Mobil ( XOM ) on Monday said that lower refining margins would cause its second-quarter profits to be between $1.1 billion to $1.5 billion lower. The company also expects lower natural gas prices to cause a hit of about $300 million to $700 million when it reports earnings later this month.

BP ADRs, as well as its shares traded on the London Stock Exchange, were each down around 4% as of 8:30 a.m. ET Tuesday.