BP spill cost increases

BP has lifted its estimate of the likely cost of the Gulf of Mexico oil spill to $40 billion (28.5 billion euros).

That pulled down its latest quarterly profit, but BP’s underlying performance beat all expectations thanks to higher earnings from refining and lower taxes.

The company said the increased charge – 5.5 billion euros more than previously calculated – reflected delays in capping its blown-out well, as well as cleaning up the damage and compensating those affected.

Its third quarter net income was down by almost two thirds from the same period last year at 1.28 billion euros.

But stripping out one-off costs, including the oil spill, the underlying results rose 18 percent.

Investors were happy with that and BP’s shares rose in London and in the US.

They also benefited from comments that the company is considering reinstating its dividend payment to shareholders next year – something it had only hinted at previously.

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