BP: heavy provisions in Q2 accounts
(CercleFinance.com) - BP announced on Monday that it would book a heavy provision in its Q2 accounts following the downward revision of its crude oil price forecast.
The British energy group said that total impairment charges - which do not impact its cash - are expected to be between 13 billion and 17.5 billion dollars after-tax in the current quarter.
In a statement, BP explains that it is now basing itself on the scenario of a barrel of Brent that averages around 55 dollars over the long term.
Note that a barrel of Brent is currently worth 37.5 dollars.
The oil giant - which says it expects the coronavirus epidemic to have a "persistent" impact on the world economy - also confirms its intention to transform itself into a “leaner, faster-moving and lower cost organisation“.
BP also took the opportunity to reaffirm its goal of becoming a “net zero” (CO2) company by 2050.
After all these announcements, the share price is down around 5% on Monday morning on the London Stock Exchange.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The British energy group said that total impairment charges - which do not impact its cash - are expected to be between 13 billion and 17.5 billion dollars after-tax in the current quarter.
In a statement, BP explains that it is now basing itself on the scenario of a barrel of Brent that averages around 55 dollars over the long term.
Note that a barrel of Brent is currently worth 37.5 dollars.
The oil giant - which says it expects the coronavirus epidemic to have a "persistent" impact on the world economy - also confirms its intention to transform itself into a “leaner, faster-moving and lower cost organisation“.
BP also took the opportunity to reaffirm its goal of becoming a “net zero” (CO2) company by 2050.
After all these announcements, the share price is down around 5% on Monday morning on the London Stock Exchange.
Copyright (c) 2020 CercleFinance.com. All rights reserved.