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| Version 4 | Version 5 |
|---|---|
| BP shares up on compensation deal | BP shares up on compensation deal |
| (about 2 hours later) | |
| BP shares have risen more than 6% after it agreed to put $20bn (£13.5bn) in a fund to compensate victims of the Gulf of Mexico oil spill. | |
| The increase halted falls that had led to the company's stock value halving in recent weeks. | The increase halted falls that had led to the company's stock value halving in recent weeks. |
| Investors said BP's agreement with the White House had "removed some of the uncertainty" surrounding the company. | Investors said BP's agreement with the White House had "removed some of the uncertainty" surrounding the company. |
| The rise comes despite the announcement that BP shareholders will not receive dividend payments this year. | The rise comes despite the announcement that BP shareholders will not receive dividend payments this year. |
| The year's first dividend payment of $2.6bn was due on Monday, but has now been cancelled. | The year's first dividend payment of $2.6bn was due on Monday, but has now been cancelled. |
| It is the first time that BP has withheld the dividend since World War II. | It is the first time that BP has withheld the dividend since World War II. |
| The company also said it would be selling about $10bn worth of "non-core" assets in order to give it more available funds. | The company also said it would be selling about $10bn worth of "non-core" assets in order to give it more available funds. |
| 'Losing money' | 'Losing money' |
| One UK shareholder, who said he would lose £600 in dividend payments on top of the declining value of his shares, told BBC News online he felt he had effectively been "robbed by Barack Obama". | One UK shareholder, who said he would lose £600 in dividend payments on top of the declining value of his shares, told BBC News online he felt he had effectively been "robbed by Barack Obama". |
| "If I was in the US, I could claim compensation for loss of income caused by the spill. But as it is, I'm losing money because of the oil spill and no one's giving me a helpline to call," said pensioner Sandy Lamb from Chester. | "If I was in the US, I could claim compensation for loss of income caused by the spill. But as it is, I'm losing money because of the oil spill and no one's giving me a helpline to call," said pensioner Sandy Lamb from Chester. |
| "I am horrendously angry about this - we're being dragged into US politics... and David Cameron has done nothing for UK investors." | "I am horrendously angry about this - we're being dragged into US politics... and David Cameron has done nothing for UK investors." |
| However, analysts were encouraged that the impact the disaster would have on BP was becoming clearer. | However, analysts were encouraged that the impact the disaster would have on BP was becoming clearer. |
| "The one thing investors hate is uncertainty," said Keith Bowman, equities analyst at Hargreaves Lansdown. | "The one thing investors hate is uncertainty," said Keith Bowman, equities analyst at Hargreaves Lansdown. |
| "A decision has been made on the dividend, and at least now we've got a few more numbers to work with." | "A decision has been made on the dividend, and at least now we've got a few more numbers to work with." |
| Uncertainty remains | Uncertainty remains |
| BP has agreed to pay $5bn into the fund this year, followed by quarterly payments of $1.25bn until the total $20bn is paid. | BP has agreed to pay $5bn into the fund this year, followed by quarterly payments of $1.25bn until the total $20bn is paid. |
| Analysts said that the compensation fund and initial clean-up costs would be easily affordable for BP, but the threat of legal action and significant fines meant it needed to conserve cash. | Analysts said that the compensation fund and initial clean-up costs would be easily affordable for BP, but the threat of legal action and significant fines meant it needed to conserve cash. |
| "The big issue is that nobody knows what the extent of BP's liabilities might be," warned Brian Tora, investment manager at JM Finn. | "The big issue is that nobody knows what the extent of BP's liabilities might be," warned Brian Tora, investment manager at JM Finn. |
| "BP is a huge company and it can certainly fund the cost of cleaning up the oil spill, but what the future holds is very difficult to tell." | "BP is a huge company and it can certainly fund the cost of cleaning up the oil spill, but what the future holds is very difficult to tell." |
| So far BP estimates it has spent $1.6bn on containing and cleaning up the oil spill so far. | So far BP estimates it has spent $1.6bn on containing and cleaning up the oil spill so far. |
| Standard Chartered warned last week that the total cost to the company, including legal costs, could top $40bn. | Standard Chartered warned last week that the total cost to the company, including legal costs, could top $40bn. |
| President Barack Obama has also said that BP's compensation costs may not be limited to the £20bn already planned for the fund, and individuals will still be able to sue the company. | President Barack Obama has also said that BP's compensation costs may not be limited to the £20bn already planned for the fund, and individuals will still be able to sue the company. |