Tuesday, November 2, 2010

BP (NYSE:BP) Costs Rise to $40 Billion for Gulf Oil Spill

While turning a profit for their latest quarter, BP (NYSE:BP) took another charge of close to $7.7 billion related to the spill, which brings their total costs to an enormous $40 billion so far.

They also turned a profit of $1.785 billion, a major improvement over the last quarter when they had a loss of $16.9 billion.

The extra charge for the quarter was higher than expected because of the company taking longer in September to plug the well than they had anticipated.

BP CEO Bob Dudley said, "We have made good progress during the quarter. This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.

"We have also begun to make important changes in the way we operate across the group ... to ensure that safety and risk management are embedded as the absolute priority for every operation, for every person, throughout BP."

The $40 billion is an estimate as to what the costs of the oil spill will ultimately be, almost 25 percent above previous estimates, and sure to rise.

1 comment:

nsurf9 said...

The writing on the wall is the US Gov will not impose the heavy weighted penalities of the Clean Water Act on BP. But, any decision to say that will take place after elections. BP will get help from its lame partners, Haliburton, et al. BP is quickly changing its lack of safety culture - it only cost them $40B. No body know oil blow-out measures than BP now knows them. The Gulf was cleaned-up (and cleaned itself up) much quicker than most expected (they didn't ready the Ixtoc well blow-out story) and the media ignored it, so did politicians with a payday in mind). No body wants the Chinese buying any more western oil assets. Commodities and intestest rates are now on the rise - both will push BP higher.