StockMarketWire.com - BP slashed its dividend as the oil major posted large losses in the second quarter after suffering $9.2bn of impairments pinned partly on falling crude prices.

The company declared a dividend of 5.25 cents per share for the quarter, down 50% from the previous quarter and said the dividend reset would remain fixed at this level.

Net losses for the three months through June amounted to $16.85bn, compared to losses of $4.37bn in the first quarter.

Underlying replacement cost losses were $6.7bn, compared with a profit of $2.8bn on-year, while revenue fell to $31bn from $74bn.

The bottom line losses included $9.2bn in post-tax non-cash impairments across the group largely arising from lower oil-price assumptions and exploration write-offs.

In the second quarter, production fell 3.5% to 3.66bn barrels of oil equivalent per day.

'Looking to the third quarter of 2020, we expect higher product demand, albeit still significantly below last year's levels. We also expect significant continued pressure on industry refining margins into the third quarter,' BP said.

The company said global oil demand was expected to be around 8-to-9m barrels of oil per day lower than 2019, with OECD oil stocks above their five-year range, and gas markets likely to remain materially oversupplied.

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