BP’s profit to take a haircut in the second quarter of current fiscal

( 3 minutes read)

· British energy giant BP revealed that it will take a hit between US$13 billion (R223bn) to US$17.5 billion (R301.3bn) in the
second quarter as a fallout of Covid-19

· The oil company is close to axe 10,000 jobs, or almost 15 percent of its global workforce

British energy giant BP revealed that it will take a hit between US$13 billion (R223bn) to US$17.5 billion (R301.3bn) in the second quarter as a fallout of Covid-19.

BP feels 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, because of the lockdown. It now expects London Brent North Sea oil prices to average US$55 per barrel between 2021 and 2050. The oil company is close to axe 10,000 jobs, or almost 15 percent of its global workforce.

Oil prices had plunged well below the level which the group needed to make a profit. Lockdown coupled with grounding of airlines had
adversely affected the demand for oil, across the world. Prices have rebounded sharply in recent weeks, but a sustained run even now is
not noticeable. The operations of BP are likely to be affected in Africa, particularly South Africa.