Posted on 06/25/2010 7:40:47 AM PDT by Sub-Driver
BP Shares' Losses Top $100 Billion
By STEVE GOLDSTEIN
LONDON—BP PLC shares dropped as much as 9% in London on Friday, putting the drop the oil major's market capitalization at more than $100 billion since the Gulf of Mexico oil spill began, as an analyst suggested the company needs to sell stock to assure counterparties of its financial health.
As U.S.-listed BP shares dropped more than 3% in early trading, the hit to its market capitalization since April 20 grew to roughly $102 billion as the oil giant plumbed a fresh 14-year low.
Nomura analyst Alastair Syme said in a note published Friday that the company's funding could be threatened as the ill-fated Macondo well continues to leak oil. He said that the roughly $15 billion of current liquidity looks adequate to deal with committed acquisitions, spill cleanup costs and the phased funding of the $20 billion escrow account.
(Excerpt) Read more at online.wsj.com ...
gosh, that’s a shame!
i guess that’s what happens when you cut corners
and fire a safety supervisor for reporting problems.
Bill Oreilly said BP would never go bankrupt because they have a trillion dollars worth of oil reserves.....
Uh, Bill, that oil is IN THE GROUND. Even if they got a 30% margin on that trillion over the next 20 years or so to get it out, the present value of that to another drilling company is what after tax....maybe $75 billion?
Your post demostrates why socialism is so dangerous.
“gosh, that’s a shame!
i guess that’s what happens when you cut corners
and fire a safety supervisor for reporting problems.”
It is a shame, this is what happens when a Fascist government viciously attacks private enterprises. You may want to take off your blinders for a minute and consider that there are over 80,000 employees of BP, there are literally hundreds of thousands of other jobs depending on BP and there are literally millions of people who own and depend on BP. This is a bigger disaster than the dam* oil spill. And, you are gloating about it! Shame on you.
This is a shame. We need a strong BP to fix the leak, clean up the Gulf, and compensate the damaged parties. If BP goes bankrupt, guess who picks up the tab?
The fact that BP is headquartered in London is neither here nor there. Fact is most of the shareholders (owners of the company) are here in the US. Many are elderly, and on fixed incomes and pensions. Most BP service stations are owned and operated by small independent businessmen. BP has thousands of employees here in the US.
This vilification of BP is ridiculous. We are talking about an accident, not a terrorist attack. Punishing BP will only make matters worse. I wise president would be working together very closely with BP executives to fix the problems.
Instead, politicians like BHO use crises like these to promote their own agendas and whip public hysteria against one of their boogymen, in this case big oil.
Yeah, I saw that too. What a stupid thing for O’Reilly to say. He really needs to wise up.
I chimed in with, "Well, I am buying nothing but BP gasoline so they don't go bankrupt and get out of paying for the clean up. Cause if they go out of business, you and I are going to have to foot the bill through our taxes to clean things up."
"So, do we buy a product and keep people working or do we not buy the product and keep the taxman working?"
The LOOK!
I just love it when a Libs gets a cold slap of reality and they get the "Who $hit in my Easter basket" look on their faces.
It’s a shame for Americans and their pension funds that hold 40% of the stock in BP. And the UK pensioners who also make up 40% of the shareholders in BP.
I won’t be happy until their stock drops to zero, and the CEO is made to frog-march off the plank on his swanky yacht!!
(oh wait...)
I have to agree! It is not now, and never has been, a good idea to have that much % of your retirement savings in stock. Especially ONE(!) stock. Anyone ever heard of Enron?
Actually, it’s all about cash flow. Suspending the nondeductible dividend to pay for the deductible cleanup costs will free up $10+ billion a year. BP has very serious short term problems, but the problems are surmountable.
if you were dumb enough to buy BP stock with there safety record tough. They took the risk to cut corners and make money and the stock holders were happy, this time they lost big time and the stock holders have to take the loss as they should.
You have made an excellent arguement for diversification.
If a retiree has just $300,000 in his retirement plan and just 10% of it is in an energy fund mutual fund and just 5% of that mutual fund is invested in BP he just lost over $750....
Some people need to think first, post later.
Bingo. Instead of trying to weasel out of and around gooberment agency regulations, the insurance carrier’s on-site actuarial applies private sector pressure to the company (the company wants to keep its insurance). The work gets done right, and because there will be a need for actuaries who also understand engineering (or sub contract the expertise) fortune passes everywhere (in the form of jobs/work).
The gulf oil disaster is a direct result of gooberment regulatory intervention.
Just like the collapse of the financial markets was the direct result of the CRA.
Just like the coming collapse of social insecurity will be the result of... one gets the picture
And who linked their fortunes to a company led by management who recklessly cut corners on safety and as a result have left the company open to billions of dollars in liability. If blame is to be laid in this then the lion's share goes to BP leadership. And if people are suffering as a result then the responsibility also lies with them. Pan Am, Worldcom, Lehman Brothers, Enron and other companies have all gone belly up due to reckless management. All took the fortunes and retirements of thousands and thousands of people with them. Tens of thousands more depended on them for their economic welfare and saw that ruined as well. Nobody is blaming the government for their misfortunes.
Bullsh*t.
Would you explain how the mechanical failure, explosion, deaths, spillage, and lack of any kind of reasonable plan for this emergency, the direct result of regulatory intervention?
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