The pandemic's chaotic effects on the energy sector have caused companies such as BP to net massive cuts to their profits and significantly lower trading prices than expected.
BP Eastern Trough Area
The oil giant saw a fourth-quarter profit of $115 million to December 31, seeing a sharp detraction from the analysts' expectation the company would run a $370 million profit.
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When compared to the same period in the year prior, the companies profits were down $2.5 billion.
Losses for the full year were down $5.6 billion - its first slump in a decade - driven by a collapse in energy prices and demand throughout the pandemic. Highly volatile oil prices, including oil dropping below zero for the first time in history last year, also contributed to the company's bottom line.
The pandemic has shown how unsustainable the fossil fuel industry is in a time of crisis, which has prompted a number of fossil fuel companies to consider greener models.
BP has pledged to be completely carbon-neutral by 2050, alongside many other major industry players. This puts it squarely in line with both the EU and the UK's current climate targets.
This comes as renewable companies go from strength to strength, partly owing to a greater demand for renewable energy at the forefront of many nation's pandemic recoveries.
It is expected renewable's market share in energy demand will only grow throughout the decade.
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BP is looking to sell off $25 billion worth of assets by 2025 to help funds its energy transition.
Cost-cutting and slashes to capital expenditure are also expected for 2021.
Company officials noted debt is expected to go up for the first quarter of 2021 but is expected to reach its target later in the year.
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