BP Profit Rose as Oil Spill Charges Went Up
Added by Gary Dunn on November 2, 2010
British Petroleum (BP) announced on Tuesday that the cost of the oil spill in the Gulf of Mexico rose up to $40bn. BP was the top oil company not controlled by any government with regard to production records last year.
Image by NASA Goddard Photo and Video via Flickr
British petroleum spokesmen stated that the delay in closing the oil well that was spilling in the Gulf of Mexico increased charges for compensations offered to those affected, cleaning the damage in the gulf and actually ending the leak itself.
Charges amounted $7.7bn which caused profit to decrease by 63 per cent to $1.8bn.
BP exceeded expectations as after the charges spent in the oil spill, the company’s profit still rose by 18 per cent as compared to the same time period last year. The forecasted profit for the oil company had been $4.6 on the average according to analysts contacted by Reuters, while the final results amounted $5.53bn.
Company shares also rose by 1.5 per cent to 430.25 pence after rumors that British Petroleum intends to reinstate its dividend next year. Senior trader Manoj Ladwa said that although a lot of uncertainty surrounds BP, it seems like the oil giant is slowly but steadily getting back to doing business.
