BP saw earnings fall by 66%

UK's oil giant BP reported that its earnings dropped by 66 per cent in the first three months of this year, brought on by low oil prices and weakening demand.

In a statement, BP said that first quarter underlying replacement cost profit, its definition of net profit, was US$$800 million in the first three months of 2020 - down from $2.4 billion a year earlier.

The oil giant said that this was because of lower oil prices, demand destruction in the Downstream particularly in March, a lower estimated result from its stake in Russian state-owned energy firm Rosneft and a lower contribution from its oil trading arm.

BP's chief executive Bernard Looney said: "Our industry has been hit by supply and demand shocks on a scale never seen before, but that is no excuse to turn inward. We are focusing our efforts on protecting our people, supporting our communities and strengthening our finances. At the same time, we are taking decisive actions to strengthen our finances – reinforcing liquidity, rapidly reducing spending and costs, driving our cash balance point lower."