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BP: Asset Writedowns, Lower Gas Prices Drive Q2 Loss

It's still paying for the 2010 oil spill disaster in the Gulf of Mexico

By Christopher Freeburn, InvestorPlace Writer

BP (NYSE:BP) announced on Tuesday that it lost $1.4 billion during the second quarter, compared to a profit of $5.7 billion in the same period last year. The oil giant also reported that revenue for the quarter declined 9% to $95 billion.

Investors were unhappy with the results, and BP shares dropped 4% in Tuesday trading in New York.

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The quarterly loss included $4.8 billion in nonoperating charges relating to write-downs of suspended projects and the value of shale gas reserves in the U.S. BP also set aside $847 million for continuing cleanup charges resulting from the 2010 explosion of the Deepwater Horizon drilling platform in the Gulf of Mexico, the Associated Press noted.

Company officials said earnings were also dampened by declining natural gas prices in the U.S. along with lower demand for oil.

Analysts cited by AP said investors were losing confidence in the company’s strategy after the results, which were described as “poor.”

Last week, oil and gas rival Chevron (NYSE:CVX) reported lower second-quarter earnings and profits, while Exxon Mobil (NYSE:XOM) posted record quarterly profits, but declining revenue.

Article printed from InvestorPlace Media,

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