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BP looks long-term amid disappointments

July 31, 2012 at 8:03 AM   |   Comments

LONDON, July 31 (UPI) -- British energy company BP expects to increase its cash flow by 50 percent in 2014 as it completes contributions to the 2010 oil spill trust fund.

BP reported an adjusted second quarter profit of $3.7 billion, a major drop, following a decline in value of shale natural gas assets and other charges.

The company said that, after $1.7 billion in post-tax expenses tied to the Gulf of Mexico, operating cash flow for the second quarter was $4.4 billion, compared with $3.4 billion the previous quarter.

BP Chief Executive Officer Bob Dudley said the company expects to increase cash flow by 50 percent of 2011 levels by 2014, after it completes its payments to the Gulf of Mexico trust fund. Major projects in Angola, Galapagos and the Gulf of Mexico are expected to contribute to future gains.

"Moving into 2013, we expect earnings momentum to build as we complete payments into the trust fund, as high-value production comes back on line, and as the impact of new projects ramps up," he said in a statement.

BP by the second quarter paid $8.8 billion in claims stemming from the Deepwater Horizon accident. As of June 30, there was a $10.1 billion cash balance in the trust fund.

The latest investigation into the 2010 oil spill suggested worker safety and performance trumped disaster prevention for BP and Transocean. Eleven rig workers died in the accident that led to one of the worst offshore oil disasters.

Topics: Bob Dudley
© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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