BP Reportedly Considers Cutting Dividend - TheStreet

BP Reportedly Considers Cutting Dividend

BP is considering deferring or reducing its second-quarter dividend to help quell the political uproar in the U.S. over the Gulf of Mexico oil spill, a report says.
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NEW YORK (

TheStreet

) --

BP

(BP) - Get Report

is considering deferring or reducing its second-quarter dividend to help quell the political uproar in the U.S. over the Gulf of Mexico oil spill, the

Wall Street Journal

reports.

BP's board could consider cutting or deferring the second-quarter dividend that is due to be announced July 27, or paying all or part of it in "scrip."

"We are considering all options on the dividend. But no decision has been made," BP CEO Tony Hayward said in an interview with the newspaper.

The

Journal

notes how Hayward's disclosure comes as he is receiving heavy pressure from the Obama administration to repair the oil spill and after 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 estimate is much higher than estimates made at the end of May.

-- Written by Joseph Woelfel in New York.

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