By Jaime Llinares Taboada

 

BP PLC reported results for the second quarter today. Here's what you need to know:

 

UNDERLYING REPLACEMENT COST LOSS: The U.K. oil giant booked an underlying replacement cost loss--a figure similar to the net-profit figure U.S. oil companies use but strips out one-off items--of $6.68 billion in the second quarter, swinging from a $2.81 billion profit a year earlier. The company-compiled market consensus had forecast a $6.8 billion loss.

 

NET LOSS: The net loss came in at $16.85 billion compared with a $1.82 billion profit for the same period of 2019. This was worse than the consensus of $15.2 billion, taken from FactSet and based on seven analysts' forecasts.

 

WHAT WE WATCHED:

 

-IMPAIRMENTS: Headline results were severely affected by noncash impairments and write-offs of $10.9 billion, related to a downward revision of long-term oil and gas price assumptions. This was lower than previously anticipated by the company.

 

-DIVIDEND: BP halved its second quarter dividend to 5.25 cents a share from 10.25 cents a year earlier. This was below the 7 cents market consensus--taken from FactSet and based on seven brokers' forecasts. Payments intend to remain fixed at this level as part of its new strategy and will be supplemented by share buybacks, the company said.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

August 04, 2020 06:43 ET (10:43 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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