BP reported a $16.8 billion quarterly loss on Tuesday, and cut its dividend in half for the first time since the Deepwater Horizon disaster a decade ago, as lower oil prices and plunging demand from the effects of the coronavirus pandemic took a toll on the London-based energy giant.
At the same time, the company took $17. 4 billion in write-offs in exploration and other activities, and cut its forecasts for oil and gas prices.
In cutting its dividend to 5.25 cents a share, BP said that it would prioritize keeping the payout at that level. The company has previously said it would cut about 10,000 jobs, with the majority expected to leave this year.
On a call with journalists on Tuesday, the company’s chief executive, Bernard Looney, outlined an effort to shift BP away from its focus on oil to what he called an “integrated energy company.”
Among the highlights of his presentation: BP will increase its investments in low-carbon energy, like solar and wind power, by tenfold in a decade, while cutting its oil and gas production by 40 percent. He also said BP would not begin exploration in any new countries.
By the end of the decade, he said, oil and gas would make up about half of the company’s capital investments, with renewables and other non-oil investments accounting for the rest.