British Petroleum (BP) revised its long-term oil price forecasts to reflect the coronavirus pandemic. According to the corporation, this will lead to the cost of its assets for many billions of dollars.
BP believes that the impact of coronavirus on the world economy and oil demand will be long-lasting. BP's long-term forecast for prices fell to $ 55 per barrel for Brent crude oil from 2021 to 2050. The company’s message notes that the new forecast may also affect the change in BP for some exploration plans.
At present, according to BP estimates, post-tax expenses and intangible write-offs based on price revisions can range from 13 billion dollars to 17.5 billion dollars. The company will provide detailed information in a report for the second quarter, which it plans to publish on August 4.
Among other things, the corporation will reduce 10 thousand employees worldwide. But not only because of the consequences of the pandemic, but also in connection with plans for a gradual transition to work with renewable energy sources. British Petroleum also announced that in 2020 it will reduce capital costs by 25% compared with the plan, to $ 12 billion.
BP’s losses are not so great
However, BP will lose a little more against the background of the whole picture. According to a new Fitch Ratings report, the losses of global oil companies due to the coronavirus pandemic and the resulting collapse in oil prices will amount to trillions of dollars.
“Financial features of oil and gas production (in terms of revenue, operating and capital costs) means that this sector dominates our forecasts for lost revenue. Losses of world oil companies in 2020 will amount to $ 1.8 trillion, “Fitch Ratings emphasized.
” Despite the fact that oil prices recovered from a historic low, they are still not at a high enough level. We expect that market sentiment will remain negative for some time even after the pandemic ends, ”the agency added. : ///
Record BP soberly estimated its losses due to the coronavirus first appeared TEKNOBLOG .
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