Energy and Utility Management Consultants

BP Returns to Profit Following Deepwater Horizon Costs

November 2010

 

Following the much reported oil spill earlier this year, BP have announced a return to profit to the tune of some $1.85bn for the quarter April-June 2010 - the same period last year saw profits of $5bn.

Although costs associated to the clean up of the spill have risen to some $40bn, BP state that this includes $20bn set aside for compensation payments - the quarterly figures that COULD have been reported had this spill not occurred boggle the mind.

Following the successful, if protracted clean-up operation, BP has had to sell some $7bn worth of assets to ensure continued operating costs have been covered - sensible business practice seeing as clean up costs recently increased by $7.7bn over previous predictions.

BP can be grateful for the recent high costs of oil in the US which has helped offset some $2bn of costs which they'd otherwise have had to directly pay themselves.

With this episode now hopefully laid to rest for the time being, BP can be expected to see share prices increasing as they continue to generate enormous amounts of income as per normal. This will see them hugely contributing to the exploration and extraction of fossil fuels in order to meet the demand of end users across the world.

 

 

 

 

< Back to news