BP Cuts Dividend as Virus Hastens Moves to Curb Oil Output
- U.K. oil major reduces its payout for first time in a decade
- Company targeting a 40% decline in hydrocarbon production
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BP Plc 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 Plc 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.