BP’s defined benefit (DB) pension scheme deficit fell by £1.15bn between December 2019 and March 2020, according to its Q1 2020 results report.

The multinational oil and gas company saw its DB scheme deficit fall from £1.24bn to £64m over the year and a quarter.

Its scheme assets increased from £5.66bn to £6.43bn, while its liabilities decreased from £6.9bn to £6.5bn.

The report stated that the movement was as a result of actuarial gains in other income, arising from improved discount rates and lower inflation assumptions.

This reduced the scheme obligations, offset by reductions in the valuation of scheme assets.

It added that the current financial environment is likely to continue to affect the value of scheme assets and liabilities, resulting in potential volatility in the scheme’s funding level.

Commenting on the report, BP chief executive officer, Bernard Looney, said: “This extraordinary time for the world demands extraordinary responses, and thankfully we are seeing that just about everywhere we look around the world. Our industry has been hit by supply and demand shocks on a scale never seen before, but that is no excuse to turn inward.

“I am incredibly proud of the work that our people are doing in all three areas, particularly our colleagues in operations - from rigs to retail and everywhere in between - who are continuing to deliver energy and provide goods in the most difficult of circumstances.”

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