News Flash: BP reports second-quarter loss after major write downs, halves dividend

A BP company logo at a gas station in London, U.K.

Chris Ratcliffe | Bloomberg | Getty Images

Energy giant BP reported a significant loss for the second quarter on Tuesday, after downgrading the value of some of its assets on expectations of lower commodity prices.

Second-quarter underlying replacement cost profit, used as a proxy for net profit, came in at a loss of $6.7 billion, meeting expectations of analysts polled by Refinitiv. That compared with net profit of $2.8 million for the same period a year earlier.

BP also announced that it had halved its dividend to 5.25 cents per share for the quarter, compared to 10.5 cents per share for the first three months of the year.

Source: CNBC

As i have shared in my previous posts, apart from EU banks it seems that EU entities are all pressured to cut or halt dividends as losses grow. For the energy sector, it is not expected to see any profits at least till Q3/Q4 since countries are starting to open up since May/June. 

However, this move on BP is not going to be positive as Exxon has also announced their earnings last week and with no intention of cutting their dividends. 

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