BP: Abyssal Loss in the 2nd Quarter

The British giant of hydrocarbons BP unveiled on Tuesday a net loss of 16.8 billion dollars in the second quarter, a consequence of depreciation of massive assets related to the crisis of the oil market.

The standard loss recorded on the second quarter is explained by exceptional charges of around $ 20 billion and corresponding to asset depreciations, particularly in exploration and production.

The group has to revise to lower the value of its activities due to the recent fall in the price of oil, which should remain weak for the long term, taking into account the impact of the pandemic on global demand.

The oil courses were funded from March, with the same negative briefing in April before resuming to turn around $ 40, a lower level to those observed last year.

Its competitor Royal Dutch Shell had announced last week and for the same reasons an abysmal net loss of $ 18.1 billion in the second quarter.

BP, which had chosen to maintain its dividend until then, announced a 50% drop, to 5.25 cents for the quarter, against 10.5 cents per action in the previous quarter.

This decision should allow it to take advantage of economies in order to overcome the crisis, after having already prevented the suppression of 10,000 jobs in the world, whether 15% of its effective.

It had previously said it wanted to reduce 25% of its investment spending and unveiled a $ 2.5 billion economy program for 2021.

BP also considers a permanent transformation, ensuring no longer wants to be a “patrol group” but an “energy group”, in order to respond to the news given consecutively to the pandemic and respect its commitments to become neutral in carbon 2050.

 

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BP: Abyssal Loss in the 2nd Quarter - /10

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The British giant of hydrocarbons BP unveiled on Tuesday a net loss of 16.8 billion dollars in the second quarter, a consequence of depreciation of massive assets related to the crisis of the oil market.

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