BP slashes spending to counter oil price collapse

BP is to cut capital spending 25 per cent this year as it seeks to bolster its finances and maintain shareholder payouts in the face of the oil price collapse triggered by the coronavirus outbreak. The capital expenditure cuts include $1bn at the group's US shale business BPX. "This may be the most brutal environment for oil and gas businesses in decades," said Bernard Looney, chief executive, on Wednesday. Stuart Joyner at Redburn said: "At current crude prices, we still see a clear and present risk of oil dividend cuts, including from BP.". When it reports first-quarter earnings on April 28, BP is expected to take a non-cash, non-operating charge of roughly $1bn to account for new oil price assumptions. Last week, in an effort to reassure staff, Mr Looney said BP would not cut jobs in the next three months.

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