“The severe and ongoing repercussions of the Covid-19 epidemic continue to create a volatile and challenging business environment,” BP said in a statement on its revenue.
“Looking ahead, the outlook for commodity and product prices remains difficult and foggy.”
It reported that the quarterly loss after tax was $ 16.85 billion (14.10 billion euros), compared to net profits of $ 1.82 billion in the second quarter of 2019.
Its chief executive, Bernard Looney, said: “Our assumed long-term price reset, associated shortcomings and unrecoverable exploration costs have had a particularly significant impact.”
BP also released details of how it expects to achieve zero emissions by 2050.
BP, which has turned from an international oil company into an integrated energy company, expected its oil and gas production to decrease over the next decade by one million barrels of oil per day, or 40 percent, compared to 2019 levels.
“The next decade is very important for the world in its battle against climate change. The push to achieve the necessary change in global energy systems will need action from all,” said Looney.
BP will have to rearrange its finances in the near future as Looney decided to cut about 10,000 jobs, equivalent to laying off 15 percent of the company’s workforce around the world due to the implications of Covid-19 on energy demand and prices.
After companies around the world closed and air traffic stopped at the height of the Covid-19 crisis at the end of the first quarter of the year, oil prices tumbled until they reached below zero for a short period.
But prices have improved dramatically in recent months as governments loosen closures and gradually reopen businesses.
In an attempt to obtain the funds, BP recently announced the sale of its petrochemical subsidiary to its private competitor, Inos, for $ 5 billion.