BP: to cut capital spending on coronavirus pandemic

(CercleFinance.com) - BP said on Wednesday that it plans to cut capital spending in the wake of the coronavirus pandemic, warning that the situation will impact its first-quarter results.


The British oil giant said it expects capital spending for 2020 to be around 12 billion dollars, about 25% below its previous full-year guidance.

The company said it mainly plans to defer certain exploration projects, along with reduced spending across its fuels marketing, refining and petrochemicals businesses.

BP also expects to achieve around 2.5 billion dollars of cash cost savings by the end of 2021, compared with 2019, thanks to the increased use of digitisation and integration, it said.

BP plans to report its first-quarter results on Tuesday 28 April.

The challenging environment is expected to have an impact on the figures, the energy group warned.

BP shares were down almost 4% on the London Stock Exchange on Wednesday morning.

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