Fall In Profit Adds Another $200 Million In BP’s Deepwater Horizon Bill
The great disaster of oil spill at Gulf of Mexico forced the renowned British Petroleum to face a sudden downturn in their yearly and quarterly profits. It is evident that it enables them to keep back almost $20 million or £123m for the said disaster that make the bill reach the amount of $42.7 billion. However, according to the reliable source, it is assumed that the end cost can be far high than this as the latest accounts do not consider the claim of legal settlement of BP. The organization is now waiting for the final settlement of US court whether or not the Deepwater Horizon accident is the result of abhorrently negligence.
If the settlement goes against the BP, chances are high that it would add an extra $20 billion to their final sheets of accounts. It is revealed from the sheets of BP that costs of Macondo chow down from that of 2010. Cancellation of several exploration, divestment program and weaker margins of refining is suspected as the crucial reasons behind the cost that lowers the profit to $2.8 billion from that of $3.9 billion during the final quarters of 2012. Interestingly, not only the profit of the final quarter lower in comparison to the previous year, but also a huge reduction in the total profits of both these years. It is evident that total profits of 2013 were also come down to $13.4 billion from $17.1 billion of 2012.
Interestingly, the organization offers its shareholders a dividend of 9.5 cents that is almost higher than 5.6% than the last quarter of 2012. In the words of the chief executive officer of British Petroleum, their organization offers a firm and strong service throughout the year that includes delivering their signature product to both their vendors and clients and boost up asset reliability. This clearly stated that he was quite satisfied from the result. He then added that such achievements help them to strengthen their organizational goal, as well as, financial target for the upcoming year, namely 2014. He is of the opinion that this success also serves the base of the constant growth in the environment of sustainable free cash flow.
BP recently announced that, in spite of lower in their profits and several other factors, 2013 is considered as the best year for last ten years. It also declared that it has obtained the permission of to drill in Greenland; however, they will not operate the same in the sensitive water region of Greenland.