MARKET TALK: Still No Clarity On BP Damages - Goldman

18th Jun 2010 07:48

0648 GMT [Dow Jones] The structure of BP's (BP.LN) escrow fund and the aggressive capex cut/disposal program will allow BP to manage the cash outflow from the Gulf of Mexico damages without needing to raise new capital, says Goldman Sachs. However, it does not clarify the total size of the damages, as the escrow fund does not represent a cap to BP's liabilities in the area. Goldman says the total damage range remains highly uncertain and includes $34B of liabilities in its valuation. "Although we believe that the risk-reward of BP shares is currently tilted to the upside, we maintain a neutral rating as we continue to see a better risk-reward in our conviction buys, Royal Dutch Shell (RDSA.LN) and Statoil (STL.OS)." Has 580p price target on BP. Shares closed Thursday at 360p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 18, 2010 02:48 ET (06:48 GMT)