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COVID-19 fallout: BP slashes dividend after $6.7 billion loss in Q2

The net loss, which was in line with analysts' expectations, was largely a result of BP's decision to wipe $6.5 billion off the value of oil and gas exploration assets after it revised sharply lower its oil and gas price forecasts

twitter-logoReuters | August 4, 2020 | Updated 12:04 IST
COVID-19 fallout: BP slashes dividend after $6.7 billion loss in Q2

BP cut its dividend on Tuesday for the first time in a decade after reporting a record $6.7 billion loss in the second quarter as the coronavirus crisis hammered energy demand.

The net loss, which was in line with analysts' expectations, was largely a result of BP's decision to wipe $6.5 billion off the value of oil and gas exploration assets after it revised sharply lower its oil and gas price forecasts.

London-based BP's second-quarter underlying replacement cost loss, the company's definition of net income, reached $6.7 billion, roughly in line with forecasts of $6.8 billion in a company-provided survey of analysts.

That compared with profits of $2.8 billion a year earlier and $791 million in the first quarter of 2020.

CEO Bernard Looney, who took the helm in February, avoided a dividend cut in the first quarter of the year despite worsening market conditions.

Also read: COVID-19 fallout: Oil prices falling as rising cases cast doubts over fuel demand recovery

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