Nothing but supermajor losses for British Petroleum
Although it is called the “earnings season," not every company had a good quarter. So is the case of British Petroleum – one of the world's "supermajor" oil and gas companies.
During the past quarter, BP lost $16.8 billion, exceeding the $11.6 billion expected. The loss was caused by the previous write-down of its assets value. During the same quarter last year, the company earned $1.8 billion.
The Q2 underlying replacement cost figures came in at $6.7 billion loss, compared with last year’s quarterly profit of $2.8 billion.
Given the current global situation and the fluctuations in the price of oil, BP announced that it halved the shareholders' dividends to $5.25 per share from a previous $10.5/share. The dividends will be kept at the new level until its balance sheet deleverages and can maintain a strong investment-grade credit rating.
Moreover, the company announced that it would transition to "an integrated energy company," It expects to be emissions-free by 2050, as it plans to invest in hydrogen and carbon capture, renewable and storage technologies.
After it announced its new strategy, BP share price gained almost 7%. This year, the stock price fell by 40%, while UK100 lost 20%.
See how the price of oil has affected major companies in this sector on CAPEX.com!
Sources: edition.cnn.com, marketwatch.com, finance.yahoo.com
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.