MARKET TALK: Oil Spill Casts Long Shadow Over BP's 2Q Results

27th Jul 2010 09:52

0852 GMT [Dow Jones] BP's (BP.LN) 2Q earnings have the Gulf of Mexico Macondo oil spill disaster casting a long shadow over them, says Evolution Securities. Says the company reports underlying net income of $5B, up 70% year-on-year, but the headline figure was hit by a $32.2B pre-tax charge relating to the Macondo well accident. Adds liquidity and working capital remain key concerns, and as a result the group is to reduce net debt to between $10B-15B over the next eighteen months from the current $23B via a disposal program mainly in the exploration and production business that could raise up to $30B. Has a buy rating, and 580p target price. Shares +0.5% at 420p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 27, 2010 04:52 ET (08:52 GMT)