BP cuts dividend as losses swell on poor oil demand

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BP has halved its dividend and reported a record $6.7bn quarterly loss after the coronavirus pandemic hit global demand for oil.

The dividend cut may be a blow for UK pension funds, many of whom have large shareholdings in BP.

The loss was largely thanks to BP writing down the worth of its assets after it cut its oil price forecasts.

The FTSE 100 company said the outlook for oil prices and demand “remains challenging and uncertain”.

It also warned that the pandemic could weigh down the worldwide economy for a “sustained period”.

In the short-term, BP said it expected demand for oil might be up to nine million barrels per day lower compared to last year.

It has already announced it’ll cut 10,000 jobs, with as many as 2,000 set to be lost within the UK.

Oil prices have plunged after the coronavirus virtually pack up major economies.

In April, the worth turned negative for the primary time in history, meaning producers had to pay buyers to require oil off their hands over fear storage capacity could run out.

BP’s loss for the three months to June compares to a $2.8bn profit within the same period last year.

The oil giant said its dividend would halve to five .25 cents a share, compared to 10.5 cents within the half-moon.

Source: bbc news

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