Oil large BP on Tuesday lower its dividend in half after reporting a $16.eight billion loss for the second quarter.
stated it misplaced $16.eight billion after taking a cost of $10.9 billion, largely for writing down the worth of assorted initiatives after the steep fall in oil costs. Analysts polled by FactSet anticipated an $11.6 billion loss. BP had earned $1.eight billion within the year-earlier quarter.
Its underlying alternative price loss was $6.7 billion, in comparison with revenue of $2.eight billion within the year-ago quarter.
BP set a brand new distribution coverage after slicing its dividend to five.25 cents per share. BP stated it’s going to preserve the dividend at that stage, after which return a minimum of 60% of surplus money to shareholders by way of share buybacks, as soon as its steadiness sheet has been deleveraged and topic to sustaining a robust funding grade credit standing.
BP additionally introduced a brand new inexperienced technique, saying it gained’t discover in any new nations because it stated there can be a 10-fold improve in low carbon funding by 2030. It stated oil and fuel manufacturing is predicted to scale back by a minimum of a million barrels of oil equal a day, or 40%, from 2019 ranges .