BP cuts dividend for first time in a decade as virus hasten shift to green energy – The National

BP cuts dividend for first time in a decade as virus hasten shift to green energy – The National

The company says it is targeting a radical 40% decline in hydrocarbon production and a 10-fold increase in low-carbon investment





























BP on Tuesday released its second-quarter earnings and said it plans to slash dividends. AP Photo











BP slashed its dividend for the first time in a decade and set out new targets to accelerate its shift to greener energy after the coronavirus pandemic upended the oil business.



The u-turn in its dividend policy was expected after European peer Royal Dutch Shell slashed its own payout in April. Big Oil's generous dividends have long been its main attraction to shareholders, and the move -hastened by the virus but made inevitable by the transition to cleaner energy - redraws the company's investment profile.



BP paired the payout news with more details for investors of its net-zero strategy - bringing forward announcements expected in September. It is targeting a radical 40 per cent decline in hydrocarbon production, a 10-fold increase in low-carbon investment and a leap in renewable-power capacity to around 50 gigawatts by 2030. It would not explore for oil in any new countries.