The consequences of the oil spill starting April 20 crushed BP (NYSE:BP) for the quarter, ending with the announced ouster of Tony Hayward as CEO of the company.
Surprisingly, analysts had been looking for BP to generate earnings of $1.43 a share, while they in fact lost an enormous $5.42 a share, missing by $6.85 a share. Losses for the quarter mounted to $17.2 billion. It is one of the worst quarters in the history of the company.
Last year during the same quarter the company enjoyed earnings of $4.4 billion, or $1.01 a share. Last quarter they generated $6.1 billion, or $1.79 a share.
The oil giant noted in order to cover existing and future costs they booked a $32.2 billion pre-tax charge. That includes the escrow fund of $20 billion, which they'll pay $5 billion annually to cover claims.
Speculation over the removal of CEO Tony Hayward has ended as well, with American Robert Dudley announced as the new CEO, who will take over for Hayward on October 1.