UK-based oil and gas giant BP has announced plans to make spending cuts to reinforce its finances. It is the latest in a long line of companies to do so.
It will reduce capital expenditure by 25%, down to $12bn. It will also cut $2.5bn from operating costs.
CEO Bernard Looney said the economic impact of coronavirus will affect BP’s first quarter results. However, planned business sales will still go ahead, and the company has assets to help it through.
He said: “This may be the most brutal environment for oil and gas businesses in decades, but I am confident that we will come through it – we know what to do and we have done so before.”
In the same statement, Looney spoke of the safety measures the company was taking to help its staff, and the ways it was helping those affected by the Covid-19 pandemic.
Yesterday, Polarcus also announced cuts to capital expenditure equal to $7m.
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