AT A GLANCE: BP Weighs Suspending Dividend; Shares Rise For 2nd Day

11th Jun 2010 22:22

THE NEWS: BP PLC (BP, BP.LN) is preparing to defer its expected GBP1.7 billion second-quarter dividend, which would be announced in July, The Times of London reported Friday on its website. The Times says BP would put the money in escrow until its liabilities from the spill are known. The Times quotes people familiar with the matter who say further quarterly dividends would be treated the same way. The dividends have faced harsh U.S. criticism. A final decision on the dividend is likely only after top company officials meet with U.S. President Barack Obama Wednesday, the Financial Times reports on its website Friday, without citing sources. Meanwhile, BP shares closed higher Friday as investors regained some confidence that the oil company could deal with the political and financial costs stemming from the oil spill that began April 20 in the Gulf of Mexico. POLITICAL PRESSURE: U.S. House Speaker Nancy Pelosi (D., Calif.) said Friday that BP must compensate business owners and workers in the Gulf Coast region for their lost earnings before it pays a dividend to shareholders. Late Thursday, the White House said BP board Chairman Carl-Henric Svanberg and "any appropriate officials from BP" have been invited to a meeting June 16 with senior administration officials. Obama will attend a portion of the meeting, according to U.S. Coast Guard Admiral Thad Allen, head of the U.S. response. CAMERON'S RESPONSE: U.K. Prime Minister David Cameron told Chairman Svanberg Friday that it was in everyone's interests that BP remains a strong, stable company. According to Cameron's spokesman, the prime minister said "he was frustrated and concerned about the environmental damage," but also "made clear his view that BP is an economically important company in the U.K., U.S. and other countries." Cameron is expected to discuss BP and the fallout from the spill during a weekend call with President Barack Obama. MARKET ACTION: A recent bounce in BP's shares, as well as a drop in the cost to insure its bonds, signals the market's concerns about the oil giant may be easing a bit. Yet U.S.-based investors say they are still wary of the uncertainty over BP's liabilities and dividend. BP's shares in London climbed for a second-consecutive session Friday, rising 7.2%, and BP's American depositary shares gained 3.6%. Meanwhile, it now costs $395,000 to insure $10 million in BP bonds for a year, down from Thursday's cost of $465,000, according to data provider Markit. THE COLLECTION EFFORT: BP captured 15,400 barrels of oil Friday, a decrease of 400 barrels a day from Thursday. As of Thursday, crews had sprayed 798,000 gallons of chemicals to disperse the oil at the surface and injected another 346,000 gallons under water to break it up near the sea floor. In 142 controlled fires, crews also burned an estimated 3.62 million gallons of oil on open water. About one-third of the Gulf remains closed to fishing. THE NEXT STEP IN COLLECTION: BP hopes to increase its daily collection rate to 40,000 to 50,000 barrels of oil by the end of this month or early July, U.S. Coast Guard Adm. Thad Allen said Friday. ESTIMATE OF HOW MUCH OIL IS BEING SPILLED: On Thursday, the director of the U.S. Geological Survey said the oil well was likely spewing out between 20,000 and 40,000 barrels a day before BP partially contained the flow earlier this month. That is up from a May 27 estimate of 12,000 to 19,000 barrels a day, and an initial estimate of just 1,000 barrels a day. WHAT THEY SAID: "We've thrown a monkey wrench into that ecosystem," said marine oil-spill scientist Chris Reddy at the Woods Hole Oceanographic Institution in Massachusetts. "There are uncertainties about the long- and short-term impacts." "BP shares now have as much upside potential as the rest of the European integrated oil sector," Goldman Sachs analysts said. "We are considering all options on the dividend. But no decision has been made," BP CEO Tony Hayward said. "My hope and my advice to Mr. Hayward is that he spend a lot less time on hyperbole and a lot more time on trying to solve the problem," White House senior adviser David Axelrod said. "It's going to be hard, given the damage that's been inflicted on the people, the ecology of that region, the economy of that region...for him to play the victim." "Boo" -- Fans at Wrigley Field let out loud boos when the BP Crosstown Cup was presented before the Cubs' game against the White Sox. BP is in its first year as title sponsor of the annual six-game series between the crosstown rivals. Dow Jones Newswires' coverage includes: BP Ready To Suspend Dividend Payment -FT =WSJ: Is BP Stock A 'Buy' Now? Investors Review The Scenarios SportsTicker: Fans At Wrigley Boo When BP Cup Presented =BP WATCH: Stock Is Up, But Investors Still Worried =OPTIONS REPORT: Confidence In BP And Halliburton =HEARD ON THE STREET: BP Dividend Debate Reminder Of Payout Uncertainty BP Directors To Make Formal Dividend Decision Monday -BBC's Peston BP Plans To Defer 2Q Dividend, Put Cash In Escrow -UK Times Standard Life Investments:Fully Support BP CEO,Management Team UK Cameron Tells BP Chairman 'Frustrated' At Oil Spill Damage Pelosi: BP Must Compensate Gulf Residents Before Paying Dividends WSJ: BP Oil Spill May Harbor Unique Biological, Health Hazards WSJ: BP Weighs Dividend Cut, Estimate Of Spill Size Is Raised As UK Defends Oil Giant WSJ/The Source: BP Dividend Woes Will Force Fund Managers To Look Overseas MARKET TALK: Goldman Takes A Fresh Look At BP, Sees Upside WSJ: UK's Cameron Hasn't Changed View On Gulf Oil Spill Clegg Warns Against 'Spat' With US Over Oil Spill UK Press Blasts US President Obama Over BP 'Attacks' Louisianans Make Emotional Plea For Help With Oil Spill WSJ(6/11) BP's Liability For Lost Wages In Doubt Caribbean Officials Worry Oil Spill May Reach Pristine Shores BP's Trading Counterparties Don't Share Investors' Fears -For additional coverage, please search on the corporate code BP. -By Jeff McCulley, Dow Jones Newswires; 212-416-2067 (END) Dow Jones Newswires June 11, 2010 17:22 ET (21:22 GMT)