Oil Giant BP Plunges Into $16.8-bn Quarterly Loss
Sumaira FH Published August 04, 2020 | 12:20 PM
London, Aug 4 (UrduPoint / Pakistan Point News - 4th Aug, 2020 ) :BP plunged into a net loss of almost $16.85 billion in the second quarter, the British oil giant announced Tuesday, as the coronavirus pandemic ravaged demand for oil, sending prices tumbling.
"The ongoing severe impacts of the COVID-19 pandemic continue to create a volatile and challenging trading environment," BP said in its earnings statement.
"Looking ahead, the outlook for commodity prices and product demand remains challenging and uncertain," it added.
The quarterly loss after tax of almost $16.85 billion (14.10 billion Euros) compared with net profit of $1.82 billion in the second quarter of 2019, BP said.
"In particular, our reset of long-term price assumptions and the related impairment and exploration write-off charges had a major impact," said chief executive Bernard Looney.
Alongside its results, BP set out details on how it expects to achieve "net zero" carbon emissions for the company by 2050.
Switching from an international oil company to an "integrated energy company", BP said that over the next decade its oil and gas production is expected to reduce by at least one million barrels of oil equivalent a day, or 40 percent when compared with 2019 levels.
"This coming decade is critical for the world in the fight against climate change, and to drive the necessary change in global energy systems will require action from everyone," Looney said.
The Irish national, who became CEO of BP in February, had previously said he wanted "net zero" carbon emissions for the company by the middle of the century.
In the immediate future, BP must rebuild its finances and Looney has already decided to axe around 10,000 jobs, or 15 percent of its global workforce owing to the coronavirus fallout on energy demand and prices.
After companies worldwide closed their doors and airlines grounded planes at the height of the COVID-19 outbreak towards the end of the first quarter, oil prices dropped off a cliff, causing them to briefly turn negative.
Prices have however rebounded sharply in recent months as governments ease lockdowns and businesses slowly reopen.
In order to raise much-needed cash, BP recently announced the sale of its petrochemical business to privately-owned rival Ineos for $5.0 billion.
BP's previous CEO Bob Dudley kick-started a $15-billion divestment programme.
In the past year, the energy major also agreed to sell its Alaska operations to Hilcorp Alaska for $5.6 billion.
Together the disposals were aimed at recouping $10 billion to finance BP's $10.4-billion purchase of US oil and gas operations belonging to mining group BHP Billiton.
Related Topics
Recent Stories
HEC reviews curricula for environmental sciences degree programme
ICC Asia looking forward to an action-packed Asia Cricket Week
Yuvraj Singh named ICC Men’s T20 World Cup 2024 Ambassador
Greece hands Olympic flame to 2024 Paris Games hosts
Two Kyiv hospitals evacuating over feared Russian strikes
World must act on neurotech revolution, say experts
Charles & Catherine's cancer diagnoses
Champions Alcaraz and Sabalenka through in Madrid Open
King Charles to resume some public duties during cancer treatment: palace
US defense chief announces $6 bn in security aid for Ukraine
Heavy rains cause damage to Spezand-Taftan railway track
Woman stabbed in Israel, attacker killed: police
More Stories From Miscellaneous
-
Modern Education Techniques: A pathway to achieve economic development
14 hours ago -
Kite Flying: From cultural festival to deadly sport
15 hours ago -
PDMA predicts gusty wind, rain with thunder, hails
3 days ago -
Iranian president Raisi given guard of honour at PM House
5 days ago -
Intellectuals, writers accolades Naseer Mirza on his literary contribution
5 days ago -
Bahawalpur Adabi Sangat hosts memorable mushaira
5 days ago
-
Cattle farming vital to alleviate poverty in rural areas
5 days ago -
Pakistan: A land of tourism, archeological wonders
6 days ago -
Transforming education sector: from job hunters to job creators
8 days ago -
Amjad Bobby remembered on 19th death anniversary for timeless contributions to music
12 days ago -
Legendary actor Nadeem’s 26 films released on Eid-ul-Fitr days in 50 years
12 days ago -
Besant Hall Cultural Centre to celebrate evening with Sanam Marvi on 26 April
12 days ago