» » BP Says Unaware Of Any Reason For Stock Price Decline – Update

BP Says Unaware Of Any Reason For Stock Price Decline – Update

(RTTNews) – Thursday, BP Plc (BP, BP.L) shares are trading lower by more than 5% currently on the London Stock Exchange, following yesterday’s sharp fall in its share price on the New York Stock Exchange. In response to yesterday’s stock collapse in the US, the oil giant said today it is not aware of any reason which justifies the movement.

On Wednesday, BP closed trading at $29.20 per share on the NYSE, down more than 30% from the previous day’s close.

Fears and speculations are looming large about BP’s ability to compensate for the damages caused by one of the worst oil spills in history. But, the company today said it has significant capacity and flexibility in dealing with the cost of responding to the incident, the environmental remediation and the payment of legitimate claims.

“BP faces this situation as a strong company. In March, we indicated that the company’s cash inflows and outflows were balanced at an oil price of around $60/barrel. This was before the costs of the incident,” the company said.

Meanwhile, according to reports, oil from the Gulf of Mexico spill is getting closer to the Florida shoreline. The US has kept up its pressure on BP, and President Barack Obama has criticized the company over its handling of the oil spill.

BP said that it has spent about $1.43 billion so far in response to the oil well incident, including $60 million funds for the Louisiana barrier islands construction project. The company noted that it is too early to quantify other potential costs and liabilities associated with the incident.

The company also said that the containment cap, installed on June 3, on the leaking oil well has collected 7,920 barrels of crude and has flared 15.7 million cubic feet of gas between midnight and noon yesterday.

Operations to skim oil from the surface of the water now have recovered about 383 thousand barrels of oily liquid in total. Almost 3,600 vessels are now involved in the response effort, including skimmers, tugs, barges and recovery vessels. BP said almost 42 thousand claims have been submitted to date and more than 20 thousand payments already have been made, totalling over $53 million.

BP.L is currently trading at 368.25 pence per share, down 23.30 pence or 5.95%, on the London Stock Exchange.

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