BP Posts Replacement Cost of $2.25 Billion for Second Quarter

By Selina Williams 

LONDON-- BP PLC reported a second-quarter loss due to a multibillion-dollar charge relating to its 2010 Gulf of Mexico rig blowout and oil spill.

The British energy giant said Monday that its replacement cost loss--a number analogous to the net income that U.S. oil companies report--totaled $2.25 billion, compared with a loss of $6.27 billion a year earlier. The company took a pretax nonoperating charge of $5.2 billion in the quarter associated with Deepwater Horizon liabilities.

Stripping out one-off items such as proceeds from sales and impairment charges, the company's underlying earnings of $720 million underperformed analysts' consensus of $839 million.

"We are very pleased to have finally drawn a line under the material liabilities for Deepwater Horizon," said Chief Executive Bob Dudley.

In the same period a year earlier, BP's earnings included a $9.8 billion charge relating to the company's agreement to settle U.S. federal and state claims over the 2010 Deepwater Horizon disaster.

Write to Selina Williams at [e-mail]

(END) Dow Jones Newswires

July 26, 2016 02:56 ET (06:56 GMT)

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