BP’s first quarter profit has dived by two thirds after the global coronavirus crisis hit demand for oil. The oil giant warned it was facing an “exceptional level of uncertainty” after a sharp reduction in the need for its products.
Lockdowns around the world have been keeping people inside, slashing demand for oil. It has sent prices to 20-year lows, with US oil turning negative briefly for the first time ever last week.
BP said that underlying replacement cost profit, its definition of net income, was $800m (£645m) in the first three months of 2020 – down from $2.4bn a year earlier. However, it said it would keep paying shareholders a dividend.
“Our industry has been hit by supply and demand shocks on a scale never seen before, but that is no excuse to turn inward,” said new chief executive Bernard Looney.
“We are focusing our efforts on protecting our people, supporting our communities and strengthening our finances.”
Source: bbc.com
