Oil spill related costs lead BP to annual loss

| February 1, 2011 | 0 Comments
”Oil

Oil giant BP has today posted a loss of $4.9 billion (£3.1 billion) for the 2010 year - much higher than analysts has expected.

The loss, which was the first in almost 20 years, was attributed to costs related to the oil spill in the Gulf of Mexico.

An explosion on a BP oil rig on 20 April took the lives of 11 people and this led to millions of gallons of oil leaking from the damaged well.

The disaster caused damage to US coastlines and wildlife and has cost the company billions in clean-up costs.

It also led to the resignation of its chief executive Tony Hayward, while the company’s share price took a battering.

However, Bob Dudley, the oil major’s chief executive, said BP would resume its dividend payment to shareholders, paying 7 cents a share on 28 March.

In the aftermath of the oil spill, dividend payouts were suspended.

BP has estimated an overall cost for the Gulf of Mexico oil spill of £25.4 billion.

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