BP to cut dividends as it prepares for fossil fuel decline
4/8/2020 18:33
BP plc says it plans to slash dividends as the global oil company prepares for declining sales of fossil fuels by boosting investment in alternative energy projects.
London-based BP said Tuesday it plans to increase spending on low-carbon technology, including renewable energy projects, 10-fold to $5 billion a year over the next decade. The company expects oil and gas production to drop by about 40% over the same period.
To help finance this strategic shift, BP says it will cut dividends to 5.25 cents a share from 10.5 cents in the first quarter. The change will help the company meet its previously announced goal of achieving net zero carbon emissions by 2050 or sooner.
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