BP’s Weak Quarter Shows Big Oil Has Barely Begun Covid Recovery

Shares slide 4.5% as cash flow drops despite oil-price rally
Earnings fall short of estimates on weak fuel sales, refining

WATCH: CEO Bernard Looney says investors have a "growing belief" in the company's transition strategy.Source: Bloomberg

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By Laura Hurst

February 2, 2021 at 7:15 AM UTC

Updated on

February 2, 2021 at 12:51 PM UTC

This article is for subscribers only.

BP Plc offered more evidence that Big Oil has barely begun to heal the wounds from last year’s historic slump.

The Western world’s largest energy producers were supposed to be sailing into the fourth-quarter earnings season with a tailwind from stronger commodity prices, but BP’s miss, Exxon Mobil Corp’s $19 billion writedown and Chevron Corp.’s surprise loss show the enduring impact of the Covid-19 pandemic. Earnings fell short of expectations mainly due to weak fuel sales and refining margins.