MARKET TALK: BP Saving $7.9B Next Two Quarters By Cutting Div

16th Jun 2010 20:21

3:21 (Dow Jones) BP will save itself at least $7.9B with its cancellation of its dividends for the 2Q and 3Q, along with nixing previously promised 1Q dividend. If it still needs cash to address the Gulf of Mexico oil spill, it can hang on to over $2.6B more for each quarter after the third that it chooses not to pay a dividend. BP shares actually extend gains on the news of a cut, perhaps because BP said it will post operating cash flow of over $30B this year and oil giant detailed the way its $20B escrow fund to pay for compensation and clean-up related to the spill will be gradually dispersed over the next 3.5 years. ([email protected]) Call us at (212) 416-2181 or email [email protected] Visit the Market Talk blog at http://www.djnmarkettalk.com (END) Dow Jones Newswires June 16, 2010 15:21 ET (19:21 GMT)