BP Reports Second Quarter Loss as Oil Spill Payments Take Toll

BP (BP) reports a second quarter loss of $5.8 billion as costs associated with the Gulf of Mexico oil spill settlement take a toll.
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BP (BP) reports a second quarter loss of $5.8 billion as costs associated with the Gulf of Mexico oil spill settlement take a toll. The 40% drop in oil prices in the past year is also cutting into BP's profits, like other oil companies. BP executives indicated they would take down capital expenditures for 2015 to below $20 billion due to what they expect to be prolonged low oil prices. BP's operating profit of $494 million in the second quarter was much less than then $4.7 billion a year earlier. BP shares have lost 5.6% this year and have declined in 4 of the past 5 years after the Deepwater Horizon oil spill. The last 5 years have taken their toll on the company, which has sold off more than $40 billion in assets to raise cash for the oil spill clean up.