Oil company BP has announced that it will cutting its dividends following the reduction in value of oil and gas assets, paired with the business suffering from a multibillion-dollar loss. 

BP reported a record loss of $16.8 billion, against last year’s profit of $1.8 billion. As a result, shareholder payouts were halved from 10.5 cents to 5.25 cents per share for the second quarter.

The dividend cut is the first to happen in a decade. It will be a major blow for pension funds and private traders, whose numerous payouts will be paused or reduced. 

BP’s oil prices forecasts were inaccurate, with demand being “challenging and uncertain".

It had claimed that demand for oil could rise to nine million barrels per day.

Additionally, 2,000 jobs are set to be lost in the UK, adding to the 10,000 jobs that have already been confirmed. 

The oil company also announced that it will start a new strategy. Its share prices were up by 6.26% to 298.6p, despite losses. 

BP is aiming to achieve "net zero" carbon emissions for the company by 2050, becoming an "integrated energy company" by making a move away from a traditional oil company. 

"This coming decade is critical for the world in the fight against climate change, and to drive the necessary change in global energy systems will require action from everyone,” the new BP chief executive, Bernard Looney said. 

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