BP falls 10 percent on dividend worries

LONDON Mon Jun 14, 2010 11:06am EDT

Oil from the Deepwater Horizon wellhead makes patterns on the water in the Gulf of Mexico off the coast of Louisiana June 13, 2010. REUTERS/Kate Davison-Greenpeace/Handout

Oil from the Deepwater Horizon wellhead makes patterns on the water in the Gulf of Mexico off the coast of Louisiana June 13, 2010.

Credit: Reuters/Kate Davison-Greenpeace/Handout

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LONDON (Reuters) - Oil giant BP (BP.L) extended falls and was down more than 10 percent on Monday afternoon, with traders citing worries about its dividend, as it faces a massive bill to clean up an oil spill in the Gulf of Mexico.

At 1442 GMT, BP was down 10 percent at 352.65 pence and down more than 46 percent from a mid-April peak.

The company's board was set to meet on Monday, to consider whether it can still pay its second-quarter dividend. The costs of putting the spill right, and compensation, will run into billions of pounds, analysts say.

(Reporting by Brian Gorman)

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Comments (9)
jstaf wrote:
BP is a huge company and obviously better at creative finance than engineering. They should be able to keep the dividend, 40% of which remains in the U.S. and a lot more going to U.K. pensioners that don’t deserve to bear any of the weight of this problem.

Jun 14, 2010 11:57am EDT  --  Report as abuse
jimmy37 wrote:
British pensioners have no more right to the dividend than anyone else. BP and everyone else involved have created a huge mess and have to clean it up. How BP chooses to finance the cleanup is up to them. * * *

There are thousands of people and businesses that are hurting because the entire ocean is messed up in that area. The tourism and fishing industries are at a standstill.

Jun 14, 2010 12:22pm EDT  --  Report as abuse
Storyburn_has wrote:
They are going to sell the US assets and become a much smaller company. 1/4 of BP’s daily oil take comes from the US

Jun 14, 2010 12:30pm EDT  --  Report as abuse
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