BP Q2 2010 results:
quarterly loss of $17.2 billion
pretax charge of $32.2 billion (includes 20B$ fund, but not fines)
plans to sell 25-$30 billion of assets, up to 13% of production assets (more than previously announced 10B$)
an asset base of some $250 billion today
18 billion barrels of proven reserves and 63 billion barrels of resources at the end of 2009
plans to reduce its debt, now about $23 billion, to $10 billion to $15 billion within 18 months
Capital spending through next year will be about $18 billion annually, in line with earlier estimates
consider reinstating its dividend in February 2011
Second quarter operating cash flow was $6.3 billion – $6.8 billion. However, excluding Gulf of Mexico oil spill related payments, underlying operating cash flow was $8.9 billion
The company’s global production assets — which do not include its refining or marketing business — are worth about $230 billion, according to estimates by J. P. Morgan Cazenove. (today's market cap: 121B$)
Excluding non-operating items and the $32.2 billion oil spill charge, BP posted an underlying replacement cost profit of $5 billion for the quarter, up 70% from $2.9 billion in same period last year.
From the earnings call:
Q: ...safety was front and center of the entire agenda over the last three or four years. So, I’m a little puzzled about how that change will be put in place...
A: Well, the first thing I could say is that you are right that there are many things that are still left to be understood, things that would lead us to various conclusions, but it is also clear that this is an accident that of course should never have happened. And we need to scrutinize and make sure we understand the implications of that in everything we do, in processes, the way we operate, our organization, the governance, the discussion of risks and so on. It doesn’t mean at all that we think that we have done something wrong in the way the company has been led by Tony. I think everybody has been impressed as you say in the way that Tony has led it, and safety has absolutely been the number one priority. But any accident of this magnitude will bring learnings to us, and it will bring learnings to other players as well in the industry, and that will have an impact on strategy and governance and ways of working. (my comment: boilerplate, nothing specific; the claim that safety has been a #1 priority under Hayward is absurd)
Earnings Call Transcript: seekingalpha.com
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