Oil major BP reported its first full-year loss in a decade, with even weaker results than expected. The company posted a net loss of $5.7 billion, compared to analyst projections of a $4.8 billion loss, as reported by Refinitiv. This compares to a $10 billion profit for the fiscal year 2019.
In a written statement, CEO Bernard Looney explained that the loss was linked to the coronavirus pandemic. “2020 will forever be remembered for the pain and sadness caused by COVID-19. Lives were lost – livelihoods destroyed,” Looney said. “Our sector was hit hard as well. Road and air travel are down, as are oil demand, prices and margins.
“It was also a pivotal year for the company. We launched a net zero ambition, set a new strategy to become an integrated energy company and created an offshore wind business in the US. We began reinventing bp – with nearly 10 thousand people leaving the company. We strengthened our finances – taking out costs and closing major divestments. And through all of this, the underlying operations of the company remained safe – one of our safest years – and reliable, and major new projects were brought on line.”
The company has made major moves towards its goal of net zero emissions. BP recently announced that it would sell a 20% stake in Oman’s Block 61 to PTTEP for $2.6 billion, part of its drive to divest $25 billion worth of oil and gas assets by 2025. It also sold its petrochemicals business to INEOS at the end of 2020 for $5 billion.
