BP (BP) Reports Q2 Loss of $17 Billion, Takes $32.2 Billion Charge for Oil Spill, Hayward Steps Down, Selling $30 Billion in Assets
BP (NYSE: BP) reported a second quarter replacement cost loss of $16,973 million, or $5.42 per ADS, versus a profit of $3,140 million, or $1.10 a year ago.
BP's income statement for the second quarter reflects a pre-tax charge of $32.2 billion related to the Gulf of Mexico oil spill. This includes $2.9 billion which has been charged for costs incurred to 30 June 2010.
Second-quarter operating cash flow, excluding Gulf of Mexico oil spill costs, was $8.9 billion, up 31 per cent compared with the same quarter last year.
Net cash provided by operating activities for the quarter and half year was $6.8 billion and $14.4 billion, including a $2.1-billion cash outflow relating to the Gulf of Mexico oil spill response, compared with $6.8 billion and $12.3 billion respectively a year ago.
BP announced today that it has taken a pre-tax charge of $32.2 billion for the Gulf of Mexico oil spill, including the $20 billion escrow compensation fund previously announced.
The company will also tell analysts later today that it plans to sell assets for up to $30 billion over the next 18 months, primarily in the upstream business, and selected on the basis that they are worth more to other companies than to BP.
BP continues to access new business opportunities, with new agreements in Azerbaijan, Egypt, China and Indonesia announced since the end of the first quarter.
“We expect we will pay the substantial majority of the remaining direct spill response costs by the end of the year. Other costs are likely to be spread over a number of years, including any fines and penalties, longer-term remediation, compensation and litigation costs,” Hayward said.
Hayward has stepped down as CEO, being replaced by Bob Dudley.
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