BP plc BP, one of the largest energy firms in the world, has paid more than $5 billion to the 2010 Gulf of Mexico oil spill claimants. This is touted as the worst spillage in the history of U.S.
The explosion occurred in 2010, when Transocean Ltd’s RIG deepwater horizon semi-submersible mobile offshore drilling rig was working for BP in the Macondo Prospect, an oil field located off shore Louisiana. BP was not able to control the oil spillage – that continued for several months. The estimated oil released – compiled by several media reports – was as high as 200 million gallons. The disaster also cost the lives of 11 workers.
Following the accident, BP was placed with significant liability by the United States. Originally, the company estimated $7.8 billion to be paid as compensation to those who were harmed by the oil spill. But later on, by February this year, BP revised the amount and increased it to $9.9 billion.
As per Patrick Juneau, the company administrator, BP has paid a total amount of $5.037 billion from the Gulf spill compensation fund to almost 62,162 affected claimants. Patrick added that more than 50% of the amount paid out so far was for the businesses that experienced economic losses. The seafood industry also received considerable payments.
BP is expected to report first-quarter 2015 earnings on Apr 28. The Zacks Consensus Estimate for the first quarter now stands at 22 cents per American Depositary Share.
Currently, BP carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Better-ranked players in the energy sector include Cheniere Energy Partners LP CQP and Western Gas Equity Partners LP WGP. Both stocks sport a Zacks Rank #1 (Strong Buy).
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