BP announces record loss as Hayward moves on
Business Digest: The company has lost £11bn after setting aside £20.8bn for oil spill
BP today reported the worst loss in its history - £11bn for the second quarter of the year – and announced Tony Hayward is to be replaced by its first American chief executive.
The loss is accounted for by the £20.8bn the company has set aside to pay for clean up costs and future compensation claims. If it wasn't for that £20.8bn, BP's profits would have doubled to £3.22bn over the last quarter, thanks to an increase in the price of oil.
Chairman Carl-Henric Svanberg said: "The tragedy of the Macondo well explosion and subsequent environmental damage has been a watershed incident. It will be a different company going forward, requiring fresh leadership, supported by robust governance and a very engaged board."
Bob Dudley has been leading BP's response to the Deepwater Horizon oil spill since late June, but will now face the challenge of not only handling the fallout from the leak but also convincing the US government that BP should be allowed to continue deep water drilling in the Gulf.
Read a full report at the Daily Telegraph. ·
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