14th Jul 2016 17:11
LONDON (Alliance News) - BP PLC said Thursday that it expects to take a pre-tax non-operating charge in relation to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico of around USD5.2 billion in its results for the second quarter of 2016.
This will take the total cumulative pretax charge in relation to the oil spill to USD61.6 billion, BP said, or USD44.0 billion after tax.
The company said that, after "significant progress" in resolving outstanding claims related to Deepwater Horizon it could now reliably estimate all of its remaining material liabilities in connection to the incident.
BP reached agreements to settle outstanding federal, state and local government claims related to the incident a year ago, and said it has made "much further progress" resolving outstanding claims in the months since.
BP believes any further outstanding claims related to Deepwater Horizon not covered by this additional charge will "not have a material impact on the group's financial performance" and said "it will deal with remaining claims in the ordinary course of business".
"Over the past few months we've made significant progress resolving outstanding Deepwater Horizon claims and today we can estimate all the material liabilities remaining from the incident. Importantly, we have a clear plan for managing these costs and it provides our investors with certainty going forward," said Chief Financial Officer Brian Gilvary in a statement.
Shares in BP closed down 0.2% at 454.65 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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