BP Takes $5 Billion Second-quarter Charge For Shale, Other Woes
LONDON (Reuters) - British oil company BP Plc took a $5 billion charge in its second quarter results on Tuesday - more than a typical three months worth of profits - in what was mainly a write down of the value of assets.
The charge was made against the declining value of U.S. refineries it has put up for sale, for U.S. shale gas assets which are suffering a slump in prices, and for the suspension of its Liberty project in Alaska.
It also included extra provisions for the 2010 U.S. Gulf oil spill, which now total $38 billion.
It tipped BP into a loss for the quarter of $1.385 billion on a replacement cost basis. Adjusted for the charge and other one-offs, profits were below expectations at $3.685 billion against expectations of around $4.8 billion.
The results came as the company's management struggle to negotiate an end to litigation over the spill and amid a damaging row with its partners in Russia.
The company said it still sees a "significant uncertainty" over U.S. oil spill obligations.
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