Seeking Alpha

BP Q2 adjusted net profit $2.71B

  • BP (BP): Q2 adjusted net profit drops to $2.71B from $3.6B a year ago and misses expectations of $3.41B.
  • $20B Gulf of Mexico oil spill compensation fund has just $300M left, with costs for provision increasing by $1.4B.
  • Claims beyond that which the fund can pay will come from future profits.
  • Results also hurt by falling oil prices, a higher tax rate and lower income from Russia. (PR)

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Comments (6)
  • Lakeaffect
    , contributor
    Comments (1153) | Send Message
     
    Falling Oil prices?
    30 Jul 2013, 09:07 AM Reply Like
  • chopchop0
    , contributor
    Comments (3860) | Send Message
     
    only a recent bump up.... earnings probably will be helped during this quarter.

     

    Thank god I dumped this turkey at 43. It's perpetually "cheap" for a reason. Management is horrible and they've essentially left the $20 billion compensation fund as open season for anyone in the gulf without oversight. No wonder it's down to $300 mill left.
    30 Jul 2013, 10:34 AM Reply Like
  • mccarvik
    , contributor
    Comments (4) | Send Message
     
    @Lakeaffect ya isnt it pretty close to its 52 wk high
    30 Jul 2013, 09:31 AM Reply Like
  • mike shannon
    , contributor
    Comments (160) | Send Message
     
    where exactly are oil prices falling?
    30 Jul 2013, 09:41 AM Reply Like
  • marchild
    , contributor
    Comments (6) | Send Message
     
    You have to remeber timing and location... Brent is what the majority of the worlds crude is priced at. Brent's average 2013 Q2 price was $103.35, compared to 2012 Q2 of $108.76.

     

    Even WTI was flat QoQ, $94.38 - 2013 vs. 94.27 - 2012
    30 Jul 2013, 11:21 AM Reply Like
  • kingcozzi
    , contributor
    Comments (127) | Send Message
     
    Probably due to hedges. Oil companies have to be careful when they hedge since it can backfire if oil prices rise, it would be a lose of future profits.
    30 Jul 2013, 11:20 AM Reply Like
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