BP Revised The Value Of Its Assets Amid Reduced Demand For Oil

SMS
BP Revised The Value Of Its Assets Amid Reduced Demand For Oil
The company said it could cut the value of its assets by as much as $17.5 billion.
SHOW TRANSCRIPT

BP announced Monday it's cutting the value of its oil and gas assets by as much as $17.5 billion. 

In a statement, the London-based company said the coronavirus pandemic could have an "enduring impact on the global economy, with the potential for weaker demand for energy for a sustained period."

It said it would lead to write-offs and impairment charges — essentially a major drop in the recoverable value of an asset — in the second quarter, ranging anywhere between $13 billion to $17.5 billion after taxes. 

BP said it expects international Brent crude futures, the world's benchmark for oil prices, to average at around $55 a barrel from 2021-2050. 

Last week, the company announced it would cut 10,000 jobs because of the pandemic. 

BP has vowed to achieve net-zero emissions by 2050 by eliminating or offsetting all carbon emissions from its operations and products. 

Contains footage from CNN.