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Politics : Stockman Scott's Political Debate Porch

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To: altair19 who wrote (66359)	6/2/2010 10:52:14 AM
From: stockman_scott	Read Replies (3) of 89467

BP Spill Cost May Hit $37 Billion, Credit Suisse Says (Update1) By Brian Swint June 2 (Bloomberg) -- BP Plc’s cost to deal with the well leaking into the Gulf of Mexico may reach $37 billion, Credit Suisse Group AG said. Cleanup costs may be $15 billion to $23 billion if the well leaks until relief drilling is completed in August, analysts led by Kim Fustier in London said. Claims may rise to $14 billion, the Swiss bank said. “By early August when the relief wells are drilled, Macondo could have spilled 45 to 75 million gallons of oil into the Gulf, four to seven times Exxon Valdez,” the analysts said. “Dividend risks are clearly rising.” BP is trying to seal a new pipe to the damaged well to direct the oil and gas to a drillship after an attempt to plug the well failed. The company has lost more than a third of its market value since the explosion on the Deepwater Horizon rig on April 20 that triggered the leak. The costs to BP would be equivalent to three years of the company’s cash flow after dividends and capital expenditure, assuming oil prices at $80 a barrel. It would need a 10 percent increase in borrowing to equity, according to Credit Suisse. BP paid a dividend of 56 U.S. cents a share last year. The company will promise to keep the dividend this week, the Times of London reported today without citing anyone. To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net Last Updated: June 2, 2010 10:14 EDT

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