February 10, 2025

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BP Faces $17.5B Q2 Hit

BP is producing down $17.5 billion in belongings in the second quarter and forecasting reduce oil charges.

The oil enterprise said Monday that it has revised its extensive-term selling price predictions and is decreasing them and extending the period of time lined to 2050.

“These actions will direct to non-hard cash impairment costs and generate-offs in the second quarter, approximated to be in an combination vary of $13 billion to $17.5 billion write-up-tax,” BP said in a push launch.

The enterprise has revised extensive-term selling price estimates. For Brent oil, the enterprise estimates an regular of all over $55 for each barrel and $two.ninety for each mmBtu for Henry Hub gasoline ($2020 authentic), from 2021-2050. BP has also revised its carbon charges for the period of time to 2050 at $100/teCO2 in 2030 ($2020 authentic).

The coronavirus pandemic drove the selling price of oil to less than $20 a barrel it has since recovered and was trading all over $38 a barrel at the time of publication.

BP CEO Bernard Looney said in February that the enterprise set out to turn out to be a web-zero carbon enterprise by 2050 or quicker.

“As portion of that procedure, we have been examining our selling price assumptions about a more time horizon. That function has been informed by the COVID-19 pandemic, which progressively appears as if it will have an enduring economic effects,” the CEO said in a statement.

“Since then we have been in action, developing our approach to turn out to be a extra diversified, resilient, and reduce carbon enterprise. As portion of that procedure, we have been examining our selling price assumptions about a more time horizon,” Looney additional.

On June eight, Looney announced 10,000 career cuts subsequent a worldwide slump in demand for oil thanks to the coronavirus crisis.

BP shares had been trading down 4.65% at $23.60 premarket Monday. The inventory has a 52-week substantial of $42.70 and a 52-week lower of $fifteen.fifty one.

This story originally appeared on Benzinga.

© 2020 Benzinga.com. Benzinga does not give financial commitment advice. All rights reserved.

Ben Stansall/AF

Benzinga, Bernard Looney, Bp, COVID-19, Oil, Oil Selling prices