commentary on Politics and a little bit of everything else

Todays BP Update…….UK reaction, Payments on Claims and The Stock Price….

The UK is is getting pissed at it’s company getting beatup…..

British investors in BP are growing increasingly frustrated with the White House’s involvement and comments about the company’s efforts to clean up the oil spill in the Gulf of Mexico, and partly blame politicians for the sharp drop in the share price.

BP’s shares, which are widely held by pension funds here, dropped 7 percent in London on Thursday because of concerns about the costs for the oil cleanup. The shares have fallen more than 40 percent since the fatal explosion at the Deepwater Horizon drilling rig in April, wiping more than £50 billion, or $73 billion, from the company’s market value.

The cost of the response to the oil spill has reached about $1.43 billion, BP said Thursday, adding it was “too earlier to quantify other potential costs and liabilities associated with the incident.”

The company told investors last week that it had $5 billion cash on hand and that it was generating “significant additional cash flow” as the price of oil remains above $60 a barrel. BP had 18 billion barrels of proved reserves and 63 billion barrels of resources at the end of last year, it said.

Iain Armstrong, an analyst at investment manager Brewin Dolphin in London agreed with BP that the company has enough money to pay for the cleanup efforts and also rejected any potential concern that the company might not be able to pay for its debt.


The stock made a bit of a recover today……

BP shares sank in London to their lowest levels in 13 years as U.S. lawmakers pressed the British oil company to halt its dividend payments and fork out more compensation for damage caused by the massive Gulf of Mexico oil spill.

BP shares dropped as much as 11 percent in London before recovering some ground by early afternoon, trading 5.1 percent lower at 371.40 pence ($5.42). In the United States, the stock bounced back as some analysts said Wednesday’s 15.8 percent selloff was an overreaction.

Still, the steady decline in the company’s share price has fallen nearly 50 percent since the spill began with an April 20 rig explosion in the Gulf, wiping out nearly $90 billion in market value.


The Company reacts to arm twisting from the media on claims payments……

BP told the Coast Guard that it would expedite payments to businesses crippled by the oil spill in the Gulf of Mexico, Coast Guard officials said on Thursday, while announcing that the oil company continues to increase its daily collection of oil gushing out of its damaged well.

Adm. Thad W. Allen, the Coast Guard’s commander in charge of the federal response to the spill, pressed BP executives on Wednesday to be more transparent in its claims processing and to provide a more comprehensive plan on spill control.

Federal officials told BP about their “concern about the length of time it is taking to pay businesses,” and the company agreed to not wait for previous monthly losses to be tallied before making payments, Tracy Wareing, of theFederal Emergency Management Agency, said at a news conference Thursday in Washington.

“BP recognized that its previous approach of waiting until after the books have closed for each month to calculate losses will not work,” Ms. Wareing said. “It won’t get dollars out quickly enough to the businesses that are struggling on the ground.”At a hearing for a subcommittee of the Senate Homeland Security and Governmental Affairs Committee, Mayor David Camardelle of Grand Isle, La., described the dire straits of people in his community who are waiting for payments from BP to make up for financial losses from the spill.

“I have 37 applications right now that’s standing by at the community center,” Mr. Camardelle said, all of which are “still waiting on a $5,000 check.”

He added: “You got a deckhand on the boat that gets $2,500, maybe. And the owner of the boat there, there’s a boatload of $5,200, that’s still waiting for a $5,000 check. You got a marina that’s waiting on a check, their electricity bill — right now, the water bill and the gas bill is $5,800 at my City Hall, and I’m not going to cut the gas off.”



June 10, 2010 - Posted by | Blogs, Breaking News, Ecology, Government, Health, Media, PoliticalDog Calls, Politics, Projections, Updates | , , ,

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