BP has reported unsurprisingly bad headline results for the second quarter of 2010, losing $17.15 billion. This compares to a $4.385 billion profit in the second quarter of 2009.
Nevertheless, the company reported $32.831 billion in Gulf oil spill-related costs for the latest quarter, which means that outside of the actual disaster, the company would have reported earnings far in excess of last year’s comparable quarter.
Operationally, this huge, global company is performing well, except of course for the massive Gulf tragedy.
Following the explosion and subsequent sinking of the Transocean Holdings LLC operated Deepwater Horizon drilling rig in the Gulf of Mexico in April 2010, BP and US Government authorities have been conducting unprecedented oil spill response activities. These ongoing efforts have sought to halt the flow of hydrocarbons from the well, capture and contain oil that has been leaking, protect the shores and clean up oil that has reached the shores. BP’s own investigation, as well as several independent investigations, into the cause of the accident are ongoing.
BP’s second quarter replacement cost loss was $16,973 million, compared with a profit of $3,140 million a year ago. For the half year, replacement cost loss was $11,375 million compared with a profit of $5,527 million a year ago.
The group income statement for the second quarter reflects a pre-tax charge of $32.2 billion related to the Gulf of Mexico oil spill. This includes $2.9 billion which has been charged for costs incurred to 30 June 2010.