Bob Dudley's 'honeymoon over' as BP shares fall 30% since spill

11 April 2012

BP shares fell today as the oil major, which is still suffering the after-effects of the Gulf

The oil major's second quarter output fell 11% in the three months to July thanks to lower production in the Gulf of Mexico, where BP has not restarted drilling, and oil field asset sales.

Replacement cost profit, BP's earnings without the impact of its inventory, was $5.6 billion (£3.4 billion) for the quarter, 13% higher than the same time last year, but below analyst forecasts of $5.95 billion.

The figures saw shares in BP slip 12.4p to 463p - some 30% lower than at the time of the oil spill in April. Richard Hunter, at Hargreaves Lansdown, said chief executive Bob Dudley's "honeymoon period is over. Investors are now calling for a potential break-up of the business to release further value for shareholders. The absence of a fresh strategic thrust may continue to weigh on the shares".

There was further embarrassment for Dudley,
as BP admitted AAR, its billionaire partners in
Russia which blocked his much-vaunted £10 billion Arctic tie-up with Rosneft, plans to seek compensation. It claims BP broke its shareholder agreement.

BP is paying $1.3 billion to shareholders through a dividend of seven cents.