BP to take up to $17.5bn hit on coronavirus

BP to take up to $17.5bn hit on coronavirus

ISLAMABAD-:British energy giant BP said Monday that it will take a hit of up to $17.5 billion in the second quarter as "sustained" coronavirus fallout ravages global oil demand.

The company, fresh from outlining plans to axe almost 10,000 jobs on COVID-19 fallout, said in a statement that it will suffer a negative impact of between $13 billion and $17.5 billion (11.4 billion euros and 15.3 billion euros) in non-cash impairments and write-offs.

BP also cut its long-term oil price forecast after the deadly virus outbreak slammed the brakes on the global economy and hurt oil prices this year.

  "With the COVID-19 pandemic having continued during the second quarter of 2020, BP now sees the prospect of the pandemic having an enduring impact on the global economy, with the potential for weaker demand for energy for a sustained period," BP said, adding the virus was set to accelerate a transition to lower carbon energy.

The group continued: "BP has revised its long-term price assumptions, lowering them and extending the period covered to 2050.(AFP/APP)