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| Version 1 | Version 2 |
|---|---|
| BP shares down on funding concern | BP shares down on funding concern |
| (about 6 hours later) | |
| Shares in BP have fallen further amid speculation that the company may have to seek extra funds to pay for its oil spill costs. | Shares in BP have fallen further amid speculation that the company may have to seek extra funds to pay for its oil spill costs. |
| Shares closed down more than 8% at 298.36p, hitting a 14-year low. | |
| In a note to investors, trading house Nomura said pressure was growing on the company to "assure sufficient funding" to stop the spill. | |
| Earlier BP said that its costs linked to the Gulf of Mexico oil disaster had risen to $2.35bn (£1.57bn). | Earlier BP said that its costs linked to the Gulf of Mexico oil disaster had risen to $2.35bn (£1.57bn). |
| The total costs, including compensation claims, are expected to be much higher. | The total costs, including compensation claims, are expected to be much higher. |
| "We consider that equity linked financing - perhaps backed by sovereign wealth - could prove the attractive short-term solution," said Nomura, | "We consider that equity linked financing - perhaps backed by sovereign wealth - could prove the attractive short-term solution," said Nomura, |
| It added that BP's perceived need for more money was damaging the company in the eyes of investors. | It added that BP's perceived need for more money was damaging the company in the eyes of investors. |
| Uncertainty | Uncertainty |
| BP's share price has more than halved since the oil disaster began in April, wiping about $90bn off the value of the company. | BP's share price has more than halved since the oil disaster began in April, wiping about $90bn off the value of the company. |
| Investors are comfortable that BP is big and profitable enough to manage the clean-up costs - it made an annual profit of nearly $14bn last year. | Investors are comfortable that BP is big and profitable enough to manage the clean-up costs - it made an annual profit of nearly $14bn last year. |
| However, there is more uncertainty over the impact that legal action and compensation claims could have. | However, there is more uncertainty over the impact that legal action and compensation claims could have. |
| UK Prime Minister David Cameron is expected to discuss BP with President Barack Obama at the G20 summit in Canada this weekend. | |
| Mr Cameron told Canadian broadcaster CBC that he would use "quiet diplomacy" to make the case for BP. | |
| He said: "This is an environmental catastrophe and we should feel sympathy and understanding for people who are suffering in that way. | |
| "I know that BP feel like that too. They want to pay out money, they are setting aside money. | |
| "But I think it is also in all our long-term interests that there is some clarity, some finality, to all of this, so that we don't at the same time see the destruction of a company that is important for all our interests," Mr Cameron said. | |
| Relief well | |
| BP is still pressing ahead with operations to collect some of the oil and gas still leaking from the oil well on the ocean floor. | BP is still pressing ahead with operations to collect some of the oil and gas still leaking from the oil well on the ocean floor. |
| It said piping oil to two vessels above was collecting about 17,000 barrels of oil a day. | It said piping oil to two vessels above was collecting about 17,000 barrels of oil a day. |
| Meanwhile work on the drilling of relief wells, designed to stop the leak, is continuing. | Meanwhile work on the drilling of relief wells, designed to stop the leak, is continuing. |
| The first well is not due to be completed until early August. | The first well is not due to be completed until early August. |