BP Should Hold Dividend on Spill Costs, Senators Say

[Joanne98]

Source: Bloomberg


June 3 (Bloomberg) -- BP Plc, struggling to control its gushing oil well in the Gulf of Mexico, should suspend its annual dividend until cleanup and liability costs are determined, two U.S. senators said.

A payout would be “unfathomable” until the obligations are tallied, Democratic Senators Ron Wyden of Oregon and Charles Schumer of New York said yesterday in a letter to Chief Executive Officer Tony Hayward. BP has enough cash flow to keep a 56-cent annual dividend, analysts including Jason Kenney at ING Wholesale Banking said.

Oil began flowing from the well after an April 20 explosion aboard the Deepwater Horizon drilling rig, which BP leased from Transocean Ltd. The well is leaking as many as 19,000 barrels a day, some of which is washing up on the shores of Louisiana and U.S. Gulf Coast states. The explosion killed 11 rig workers.

“We find it unfathomable that BP would pay out a dividend to shareholders before the total cost of BP’s oil spill clean-up is estimated,” the senators wrote. Victims’ families and businesses damaged by the oil “deserve to know that BP will fulfill its obligations to them before its shareholders.”

BP will pledge this week to maintain the dividend, the Times of London reported yesterday without citing a source. BP spokeswoman Sheila Williams declined to comment on the report. The company paid $10.5 billion in dividends last year, according to its annual report.


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aj7RYQwEcBJQ&pos=2

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This is an outrage.

[Captain Hilts]

1. Absolutely. nt

[SpiralHawk]

2. "That may be just, but it's not republicon." - Republicon Oil Cronies (R)

"Power to the CorporOpeople>" - Republicons

[dixiegrrrrl]

6. Where did you get the great graphic?

I wonder if they still teach about the Robber Barons anymore?

[phantom power]

16. That cartoon was in my HS history text.

I bet our Splendid New Robber Barons do whatever they can to squash historic comparisons
:evilgrin:

[dipsydoodle]

3. However

It's not up to your two senators.

[Scuba]

4. I thought dividends came as a result of profits...

...how can you be profitable when you have a 5 trillion dollar mess to clean up? Isn't that a cost of doing business?

[dipsydoodle]

5. Distribution of past profit

actually.

There seem to be almost as many accountants here in DU as there are underwater engineering specialists.

[BeFree]

7. So

BP is going down and taking the gulf with it, and you think it is wise to continue 'business as usual'?

[dipsydoodle]

8. Its important that they do

given they guaranteed to cover all reasonable costs from the outset. Thye are also obliged to do so under law as a duty to their shareholders.

[BeFree]

9. Guaranteed?

Really, you have a written signed and enforceable guarantee from BP?

Really, you need to get a friggin grip, sport.

BP has already violated their shareholders.

[dipsydoodle]

10. The exact expression BP used

was "all legitimate economic claims."

I found that by searching without too much dificulty. I'll leave you to do the same.

[BeFree]

11. From 'guarantee' down to expression

You sure are on the move. Spin, here, and spin now, eh?


"....given they guaranteed to cover all reasonable costs from the outset. Thye are also obliged to do so under law as a duty to their shareholders.""

I know you don't care to explain your position, because you can't and keep any credibility, but go ahead, you may be able to make us laugh.

[dipsydoodle]

12. It was business as usual

to which duty to shareholders refered.

I'll leave you to continue kicking this post now by some other means.

[BeFree]

13. Oh?

You are leaving the discussion? Why is that?

Is that just an expression, or is it a guarantee?

I'd like you to stick around, don't go away, there is much to discuss.

[IronLionZion]

14. Then investors will rapidly sell off their stock and lower the price

and the company will tank. I want the well blocked and the oil cleaned up and restitution paid before the company tanks.

[phantom power]

15. You know, BP can make any decision it want re: their dividends...

But if there is any justice, they'll be getting a Very Big Damage Bill to pay. So hopefully that will figure into their decision.

[CountAllVotes]

17. no more $$$ for any of these greedy bastards

none of them. Period.

:kick: