Warning of another BP dividend cut as oil price struggles

Oct 25, 2020

BP investors brace for another dividend cut as oil price continues to struggle

By Harriet Dennys, Financial Mail On Sunday

Published: 09:56 EDT, 25 October 2020 | Updated: 09:56 EDT, 25 October 2020

Oil giant BP could have to cut its dividend again, analysts warn. 

BP halved its dividend in August after a record $6.7 billion loss for the three months to June. 

On Tuesday, it is expected to report an underlying loss of $120million for the quarter to September. It had a $2.3billion profit for the same period last year.

In the red: BP is expected to report an underlying loss of $120million for the quarter to September

Russ Mould, investment director at AJ Bell, said BP’s plunging share price ‘reflects investors’ scepticism that its dividend is sustainable longterm without a considerable recovery in the oil price’.

Susannah Streeter, from Hargreaves Lansdown, questioned ‘whether BP will continue to be able to afford to pay the current dividend’.

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