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Daily Digit: BP's spill payouts leap

Tuesday, July 30, 2013 - 01:21

July 30 - BP's $20 billion Gulf of Mexico oil spill trust fund has almost run out after provisions for compensation costs. As Hayley Platt reports it contributed to worse than expected second quarter results.

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$300 million is today's daily digit - all that's left in BP's oil spill pot. Compensation costs leapt by $1.4 billion in the second quarter. 198,000 claims have been made so far - BP says many aren't victims of the spill and is battling with the compensation legislator But it's legal efforts so far have proved fruitless and businesses still have until next April to make a claim. BP says future payouts will have to come from its profits. Kevin Allison is from Reuters BreakingViews. SOUNDBITE: Kevin Allison, Reuters, BreakingViews, saying (English): "I think the risk with BP is the aftermath of this oil spill with them having to shrink the company dramatically with them wandering in to this swamp of US litigation and with them also swapping their Russian business for a huge stake in Rosneft which they don't have direct control over has them fundamentally with less control over the business." BP's second quarter net profit fell well short of expectations to $2.71 billion. It was $3.6 billion a year ago. The company was also hit by lower oil prices, high tax rates and lower income from Russia. The news sent shares down almost five per cent and the pain is far from over. In September BP's back in court on civil charges connected to the spill.

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Daily Digit: BP's spill payouts leap

Tuesday, July 30, 2013 - 01:21