Ok, in 2008, BP made 21.6 billion, in 2009, they made 16.7 billion.
Reference the third qtr report for 2010 found here:
Key notes about 2010:
Annual statement declares loss for the year (2010) of 3.3 billion.
BP wrote down a 39 billion loss related to the spill in 2010, and took a tax credit to close out 2010 almost even. Just so we are clear, the 39 billion has already been accounted for in the books, after the tax break they almost broke even.
You can find it in the qtrly report linked above, on page 3, paragraph 2 of the claims process and escrow account topic...
The 20 billion escrow isn't even funded yet. They are paying the 20 billion in installments over the next 3.5 yrs at a time value of money discounted rate, and any money not spent reverts back to BP. The assets sold are collateral for the account. In the report there were claims of nearly 1 billion as of 2010, and you can reference this article from June 1, 2011 for claims so far:
Basically, the guy running the claims says he has paid out just over 4 billion thus far, and after this period of time, doesn't expect a whole lot of new ones to come in. Further, the oil spill liability cap is 75 million.
The wild card is being convicted of gross negligence. If this was a one company deal, maybe so. In my opinion, with so many other companies involved and at least one already coming forward with a liability payment, I don't see how in the world anyone in their right mind can pin this all on BP and say it was completely their fault and they must except full responsibility to the tune of being gross negligent.
Call me crazy, but that doesn't make sense to me.
So big picture:
BP makes 16-21 billion a year the last couple yrs before the spill, they already wrote off the worst case scenario and nearly broke even in 2010, and have 3.5 yrs to pay off a discounted fund that looks like may not even go half of.
They lost a half years to years worth of profits. End of story.
YES I AM LONG, you people who aren't long, long term are NUTS!
Wouldn't it still be BP's responsibility to test the BOP and give it their seal of approval before putting it into production? I have never worked on an offshore rig, but what I would have done is to drop the BOP on the ocean floor, thread a pipe through it, and press the buttons to test basic functionality FIRST, before production deployment. Are we just talking about really really stupid people here or what? Is there no way to successfully test the BOP without rendering it useless for subsequent production deployment?
and you are the only one with this "crystal ball?" The only one who can see the truth, i guess? The whole frigging market is wrong in its valuation of BP because u've discovered the truth? hahahaha. All you've managed to show is tht the ACCIDENT IS NOT HTE REASON for present valuation!
As you've "discovered" the spill liabilities do not justify ALONE present valuations. Thus, there must be more to market thinking, and of course there is. 1) mgmt of this company is worthless, and 2) this company is going to be locked out a significant source of its past profitability. That is why its valued down here and why it will stay down here.
Also, Anadarko owns 25% and Mitsui 10%, so BP is has less than 2/3 ownership. Fact: DeepWaterHorizon is owned by RIG, not BP. Fact: CAM and RIG cited by USGov Reports for failure in Platform Operation and BOP design [USGov has NOT cited BP for anything) Fact: HAL cited for "Bad cement job." Fact: Presidential Commission stated it was NOT BP, but "Systemic" problems in the Industry (Likely to be Exhibit 1 in BP lawsuit if cited for Gross Negligence.
Bottom Line: There are too many dopes and stupid anti-BP hyenas on this board who don't know the facts, and frankly don't want to know the facts...just want to throw Handgrenades, while hiding behind they're anonymity (Blood_V, A_Pane_In_The_Glass, and Stakeholder all come to mind here!)
Thank you for the real story here, but to be fair and REAL here I do think BP was the owner of the well and BP will bear most of the cost as they should.. (from a BP shareholder) I do have to state that they have not denied any real responsibility here either, which will get them a few points from the govt.
The fines will be significant .. but should not be more than 20 billion (BP's part) and 10 billion (between the other companies)..BP will take a while to get back.. my price is $50 by 2012 and $60 by 2013.. If BP gets bought out though, I think RDS is the buyer.
Just another opinion...