BP halves dividend after record loss, speeds up reinvention

BP’s net loss was in line with analysts’ expectations and was largely a result of the company’s decision to wipe US$6.5bil off the value of oil and gas exploration assets after it revised its price forecasts.

LONDON: BP cut its dividend for the first time in a decade after a record US$6.7bil second-quarter loss, when the coronavirus crisis hammered fuel demand, and it sought to win over investors by speeding up its reinvention as a lower carbon company.

Its shares rose more than 7% yesterday after BP unveiled earlier than expected a plan to reduce its oil and gas output by 40% and boost investments in renewable energy, such as wind and solar, over the next decade.