BP Reinstates Dividend but Problems Linger

BP (BP) has benefited from high oil prices and, as expected, the energy giant has reinstated its dividend. BP said in a statement that it would sell two American refineries, Texas City and Carson, and "plans to resume the payment of quarterly dividends, which were suspended in June 2010 following the oil spill in the Gulf of Mexico."

The U.K.-based company posted a fairly impressive fourth-quarter profit, but a full-year loss. "BP's fourth-quarter replacement cost profit was $4,614 million, compared with $3,447 million a year ago. For the full year, replacement cost loss was $4,914 million compared with a profit of $13,955 million a year ago. Including the impact of the Gulf of Mexico oil spill, net cash used in operating activities for the fourth quarter was $0.2 billion and net cash provided by operating activities for the full year was $13.6 billion, compared with net cash provided in the same periods of last year of $7.3 billion and $27.7 billion respectively. The amounts for 2010 included a net cash outflow of $5.4 billion and $16.0 billion for the fourth quarter and full year respectively relating to the Gulf of Mexico oil spill," the company said in its earnings statement.

The company also re-committed to improving safety procedures since the disastrous oil spill.

BP still faces the problem of whether its $20 billion fund for the clean-up of the Gulf spill will be adequate. Perhaps more important, it is not yet clear what fines and sanctions the firm will face from the U.S.

BP will also have to prove to investors that the restructuring its has gone through since the spill will create a more nimble and profitable company. The oil firm has sold off a number of assets to cover the costs of the Deepwater Horizon explosion. It has now decided to exit most of its refining operations in the U.S. And, it has gone to the capital markets to raise debt. It may take until 2011 or even 2012 financial results are released before the investment world knows whether most of BP's decisions were the correct ones.

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Obama is all about big oil BP has him in their back pocket. Let also not forget Obama gave the rich a tax cut after 13 times of saying he would not do it. That make Obama al liar.

February 01 2011 at 1:22 PM Report abuse +5 rate up rate down Reply

You bash business, they close up shop and take their refineries to the islands. And some people have the audacity to complain about high unemployment while they bash business. We are at war with ourselves with precious little economic sanity.

February 01 2011 at 1:14 PM Report abuse +9 rate up rate down Reply
1 reply to jerhoad's comment

Poor babies!........sounds like playing in the sandbox when one is 5 years old! You know?

February 01 2011 at 1:20 PM Report abuse -11 rate up rate down Reply

At what particuliar point in time would it take to realize that the tax credits, tax subsidies, corporate welfare, whatever you wish to call it...are a complete and total waste of the american taxpayers money? (and, the worldwide waste of tax revenues?)

February 01 2011 at 1:02 PM Report abuse -8 rate up rate down Reply

It is all about The Pump and Dump, the small buyer buys at a pumped price, than the top Dumps to bring the price down and you loose your money.
For everone else the inflation is raised and same result you loose your money.

February 01 2011 at 12:35 PM Report abuse +8 rate up rate down Reply

Why do we, as investors, who believed (and still believe) in the company, have to wait behind BP's bonus compensation to it's well paid management...?
I've chosen to hold on to my stock, but the clock is ticking.
Makes one wonder what is going on.............
Not really.........

February 01 2011 at 12:27 PM Report abuse +5 rate up rate down Reply

Wouldn't it be nice,to return to the days of market controlled supply and demand. Instead of industry controlling the supply, to create demand!!!

February 01 2011 at 12:11 PM Report abuse +11 rate up rate down Reply
1 reply to libra's comment

Ahhhhhhhhhh Yes! The good old days.......when 1950's economics 101 really meant something? 'Capitalism gone wild' is not our grandfather's capitalism?

February 01 2011 at 1:04 PM Report abuse -7 rate up rate down Reply

Well.... What a surprise. We don't have a "Laissez Faire" government. That means let the marketplace work without interference. We have a "Corporate Control of Government" government.... so corporations are protected... With the BP spill, the company should have been eaten alive paying for the real damage that it caused. MIllions of people's lives harmed... millions of plants and animals killed... land ruined.

February 01 2011 at 11:45 AM Report abuse +7 rate up rate down Reply

First Exxon and now BP. Bravo. We need strong results from our corporations, despite what Chairman Comrade Maobama leads you to believe.

February 01 2011 at 11:43 AM Report abuse +4 rate up rate down Reply

And so it goes big oil wins again !!!!

February 01 2011 at 11:29 AM Report abuse +8 rate up rate down Reply
1 reply to libra's comment

Big Oil will always win. Do you want to know why? Because the smartest engineers, geologists, scientists, and just generally hard working "get it done" people work for them. No "lazy" entitlement attitudes are tolerated like those in our government or government run companies. If Exxon or BP ran their business like our government runs our business oil would be $1,000 dollars a barrel.

February 01 2011 at 3:00 PM Report abuse rate up rate down Reply

What about the little guy struggling at the pump?

February 01 2011 at 10:59 AM Report abuse +4 rate up rate down Reply