LONDON (AP) — 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.

BP announced the shift as it reported a second-quarter operating loss of $6.68 billion as the COVID-19 pandemic cuts oil prices and demand for energy. The figure, which excludes one-time items and changes in the value of inventories, compares to an operating profit of $2.81 billion in the same period last year.