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British Petroleum suffered a record quarterly loss

Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
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!


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.