) first-quarter profit tumbled by two thirds and its debt climbed to its highest on record as the coronavirus crisis hammered oil demand, but the energy major kept its dividend despite warning of exceptional uncertainty.
“I can see many reasons why this recovery will take longer and therefore I think we’re in this for quite some time,” Chief Executive Bernard Looney, who took over in February, told Reuters. But BP, whose net debt climbed to its highest since at least 2015, kept its dividend of 10.5 cents per share and said it had repurchased shares worth $776 million in the quarter.
Including inventory charges of $3.7 billion for oil it holds, the company reported a loss of $4.4 billion.BP has so far resisted cutting its dividend after raising it in February, even though some investors have said top oil and gas companies should consider reducing shareholder payouts. Looney said BP aimed to reduce costs so it could generate profits and pay dividends at an oil price of $35 a barrel in 2021, down from a breakeven $56 a barrel in 2019. He said spending could be cut further next year.
BP’s debt rose to $51.4 billion in the first quarter and its debt-to-capital ratio, or gearing, rose to 36%, significantly higher than its target of keeping it below 30%.Cash flow slumped to $1 billion in the quarter, the lowest in at least six years, compared with $5.3 billion last year.
Oil will survive, of coarse you could just give them 18 billion$$$$$
How about we do away with quarterly reports and go for 6 months - takes pressure off the business and teams can focus on recovery..... 🤷♂️
Cry a tear for BP