BP reported a second-quarter profit of $1.3 billion on Tuesday, missing analysts' expectations, after taking a $9.8 billion pretax charge related to a settlement with U.S. authorities over the 2010 Gulf of Mexico spill.
BP maintained its dividend at 10 cents per ordinary share.
BP's underlying replacement cost profit, the company's definition of net income, was $1.3 billion, lower than analysts expectations of $1.64 billion.
This month, BP reached an $18.7 billion settlement with the U.S. government and five states to resolve most claims from the deadly Gulf of Mexico oil spill five years ago in the largest corporate settlement in U.S. history.
It should be better than Q1 due to improvement in oil prices and trading in commercial oil bought by BP during the slump in prices of crude in Q1, when BP bought $1.3 billions of crude to be sold in the next few months due to oil prices contango. The downstream operation are profitable during low crude prices and that might provide further income from refining and petrochemicals. We might see some increase of oil produced from BP Middle East operations, which have historically low OPEX. Profits wouldn't be as high as when oil prices at $140, but it might bet analysts estimate and maintain a high dividends payment of 6%. I do not believe that BP would be less profitable than its seven sisters oil majors. GLA
Is this the bottom ? I fear not I have looked at current and predicted near future outlook for Global Oil supplies based on my findings I can see the SP retracting to circa £3.60 I sure hope I am wrong as it will take a long time to get back my investment . Best of luck to all investors Keep Smilling
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