BP lost two-thirds of its profit during the first quarter of 2020.
Besides the lost profit, the company is facing significant debt, reaching numbers unseen for more than five years, after the pandemic slashed the Oil demand.
The energy giant, BP, said that earnings fell in Q1 to $628 million from $2.10 billion from the period last year. The cost-profit also dropped to $800 million. However, it is bigger than the consensus of $710 million.
From the $67.41 billion same period last year, the revenue fell to $59.54 billion, while the net loss was $4.37 billion.
The production fell to 2.58 million barrels per day, a drop of 2.9%.
For the second quarter, BP expects the output to be even lower: it all depends on how OPEC+ takes care of the situation, and on how the pandemic will develop further.
The share price lost 1.5% during the morning trade, with an overall drop of 35% since the beginning of the year.
To see the impact the pandemic and the low oil demand had on the market, we can take two of the biggest drilling companies in the world as an example:
Diamond Offshore filed yesterday for bankruptcy. The company’s revenue fell 12% under $1 billion. In just one year it lost twice as much as it did two years ago. But Diamond Offshore is not the first to go bankrupt, Whiting Petroleum did this at the beginning of the month. The collapse came once the Oil price reached $20 per barrel.
No one knows what to expect as Oil just partially rebounded from a negative historic drop just a week ago when the futures contracts traded at -$37.63 per barrel. Yesterday alone, it lost more than 25% to $12.57.
See the difference when investing with CAPEX.com by accessing elite features:
- Stellar custom service
- Powerful WebTrader platform and mobile app
- High-end integrated trading tools
- Full license and regulation from top regulators
Sources: edition.cnn.com, marketwatch.com, investing.com, cnbc.com
The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.
Uživatelé / čtenáři by se neměli spoléhat výhradně na informace, které jsou zde prezentovány, a měli by také provádět vlastní výzkum / analýzu a také četli skutečný podkladový výzkum. Obsah je obecný a nezohledňuje individuální osobní situaci, investiční zkušenosti nebo současnou finanční situaci.
Společnost Key Way Investments Ltd proto nebere žádnou odpovědnost za ztráty obchodování z důvodu použití a obsahu zde uvedených informací. Výkonnost v minulosti není spolehlivým ukazatelem budoucích výsledků.