BP: higher cash payments related to Deepwater, shares drop
(CercleFinance.com) - BP expects to take a post-tax non-operating charge of around 1.
7 billion dollars in its fourth-quarter results as the Deepwater Horizon class action settlement is winding down.
In a statement issued this morning, the British oil major said that the charge results primarily from significantly higher claims issued in the fourth quarter.
However, BP insists that the charge is already covered within existing financial framework and that the cash impact is expected to be spread over several years.
Moreover, the charge is manageable, especially now that the company is back into profit at 50 dollars per barrel, BP said.
Still, cash payments related to Deepwater Horizon are now expected to be around 3 billion dollars in 2018, as compared to the company's third-quarter estimate of just over 2 billion dollars.
As a result, BP shares were trading down this morning in London, losing 2% at 522 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
7 billion dollars in its fourth-quarter results as the Deepwater Horizon class action settlement is winding down.
In a statement issued this morning, the British oil major said that the charge results primarily from significantly higher claims issued in the fourth quarter.
However, BP insists that the charge is already covered within existing financial framework and that the cash impact is expected to be spread over several years.
Moreover, the charge is manageable, especially now that the company is back into profit at 50 dollars per barrel, BP said.
Still, cash payments related to Deepwater Horizon are now expected to be around 3 billion dollars in 2018, as compared to the company's third-quarter estimate of just over 2 billion dollars.
As a result, BP shares were trading down this morning in London, losing 2% at 522 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.