With the zeal of a convert, oil-and-gas large BP BP +6.71% is following its European friends down the trail to a low-carbon future. It’ll take a very long time earlier than traders have any thought what sort of returns await them within the promised land.
New Chief Govt Bernard Looney promised in February to chop BP’s web emissions to zero by 2050, in a reversal of the London-based firm’s earlier stance. On Tuesday, he introduced plans to realize this ambition alongside a combined set of outcomes.
The corporate booked a replacement-cost loss of $17.7 billion within the second quarter, primarily on account of decrease fossil gas costs and asset write-downs price $17.four billion after tax, offset barely by sturdy returns from its buying and selling actions. The outcomes have been according to these of friends, who’ve struggled with one of many business’s worst quarters ever. Plummeting demand on account of Covid-19 lockdowns has exacerbated issues brought on by an oversupply of oil and gasoline.
BP halved its dividend, as many expected, and stated the payout would not rise. Any extra money flows will in future be used to pay down web debt to a extra manageable $35 billion—from $41 billion on the finish of June—after which principally to purchase again shares.