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

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

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