BP has 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 s $19bn (€15.8bn) write-down and Chevron 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.
BP – headed by Irishman Bernard Looney – eked out a modest profit, but it was just a fraction of typical pre-pandemic levels. Cash flow, which failed to cover dividends and capital expenditure despite deep cuts to both, raised more fundamental questions about the company s ability to sustain investor returns.