BP will be reporting its half year financial figures this Tuesday. Many shareholders are interested to know if BP will be setting aside more money related to the Deepwater Horizon spill. Many have expected for BP to increase this amount, but recent news has been in BP’s favor, at least, as far as the Federal civil action against it.
Will BP be setting aside more money toward the oil spill?
BP had budgeted for roughly $43 billion in clean-up, legal and other costs.
Some speculate this amount could rise by up to $50 billion with the Federal civil case against BP, and the claims being submitted under BP’s settlement agreement with individuals and businesses in Gulf communities.
The good news for BP is that Halliburton just pleaded guilty to destroying evidence of post-spill internal tests, which showed that there was no difference of whether BP put 6 or 21 casing centralizers on the well in the spill. Halliburton had tried to pin blame on BP for not taking their safety recommendations when cementing the well. It turns out it would not have made a difference, according to the tests.
This evidence will likely be admissible in the civil case against BP and increases the chances BP will not be found grossly negligent, which could save BP $10 billion or even more. If BP is found grossly negligent, its maximum penalty under the Clean Water Act could increase from $4.5 billion to roughly $21billion.
With this Halliburton news, BP may have no need to set aside more money for the time being. BP is still fighting the payouts of business economic loss claims under its settlement agreement with Gulf businesses. The Appellate Court still has not ruled on BP’s latest appeal, but it is expected they are going to lose. BP then needs to decide whether to appeal to the Supreme Court, if the Supreme Court will even take the case.
As far as BP’s profits, it is expected that BP has made a profit of roughly 7.7 billion for the first six months of the year. This does not include their $12.5 billion profit this year from the sale of a business unit.
We will find out on Tuesday if BP makes any statements on the costs regarding the oil spill.
BP Settlement Blog 