BP cuts dividend after huge loss

Ruben Hill
August 4, 2020

The portfolio it plans to build would include renewables, bioenergy and early investments in hydrogen and carbon capture and storage technology, with the bulk of the budget to be spent by 2025.

It pledged to increase low-carbon spending to $5B a year by 2030 and boost renewable power generation to 50 gigawatts while shrinking oil and gas output by 40% compared with 2019.

Over the same period, BP's oil and gas production is expected to reduce by at least one million barrels of oil equivalent a day, or 40%, from 2019 levels.

Meanwhile BP announced a new strategy to deliver its "net-zero" ambition, targeting a 30pc to 35pc fall in emissions from its operations by 2030. "We are confident that the decisions we have taken and the strategy we are setting out today are right for BP, for our shareholders, and for wider society".

The London-based oil and gas explorer cut its dividend from 10.5 cents per share to 5.25 cents on Tuesday when it reported second-quarter earnings. "Our new investor proposition includes a new distribution policy, which is created to reward our investors with committed distributions".

BP on Tuesday reported a $16.8 billion pre-tax loss for the three months through June as the COVID-19 pandemic zapped energy demand and caused a historic drop in prices.

It came as the oil titan slumped $6.7bn into the red under its preferred measure of underlying replacement cost loss, which was slightly better than the $6.8bn that analysts had predicted.

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