BP Posts Replacement Cost of $2.25 Billion for Second Quarter
July 26 2016 - 03:11AM
Dow Jones News
By Selina Williams
LONDON-- BP PLC reported a second-quarter loss due to a
multibillion-dollar charge relating to its 2010 Gulf of Mexico rig
blowout and oil spill.
The British energy giant said Monday that its replacement cost
loss--a number analogous to the net income that U.S. oil companies
report--totaled $2.25 billion, compared with a loss of $6.27
billion a year earlier. The company took a pretax nonoperating
charge of $5.2 billion in the quarter associated with Deepwater
Horizon liabilities.
Stripping out one-off items such as proceeds from sales and
impairment charges, the company's underlying earnings of $720
million underperformed analysts' consensus of $839 million.
"We are very pleased to have finally drawn a line under the
material liabilities for Deepwater Horizon," said Chief Executive
Bob Dudley.
In the same period a year earlier, BP's earnings included a $9.8
billion charge relating to the company's agreement to settle U.S.
federal and state claims over the 2010 Deepwater Horizon
disaster.
Write to Selina Williams at selina.williams@wsj.com
(END) Dow Jones Newswires
July 26, 2016 02:56 ET (06:56 GMT)
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