LONDON: BP reported Tuesday a huge $20.3-billion (16.8-billion- euro) net loss for last year, despite a slender fourth-quarter profit, as the coronavirus pandemic ravaged global energy demand.
The loss contrasted sharply with net profit of $4.0 billion in 2019, the British energy major said, adding that the oil sector had been “hit hard” by the fallout from the Covid-19 crisis.
The London-listed giant said the loss was driven by tumbling oil and gas prices, as well as by significant impairments and exploration write-offs during a tumultuous year for the energy industry.
However in the fourth quarter, net profit hit $1.36 billion after the sale of BP’s petrochemical business to privately-owned rival Ineos for $5.0 billion.
BP launched plans last year to axe about 10,000 jobs or 15 percent of its global workforce under a cost-cutting drive that ends in 2021, and embarked upon major asset disposals after coronavirus sparked huge asset writedowns.
“2020 will forever be remembered for the pain and sadness caused by Covid-19. Lives were lost — livelihoods destroyed,” Chief Executive Bernard Looney said in a statement.
“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 United States,” Looney said.
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