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BP Pays High Fines for Oil Spill; Staff Members Face Arrests (BP)
Oil and gas company, BP plc( BP ) plans to pay large fines and faces employee arrests.
The company will face fines of up to $5 billion, as well as the arrest of at least two of its employees for the massive explosion and oil spill in the Gulf of Mexico in 2010.
The blowout, which resulted in the death of 11 BP employees, as well as an 87 day oil spill will cause two BP employees to face manslaughter charges.
The southern US coast was devastated from the oil spill, which put 200 million gallons of crude oil in the gulf and up to the shore.
The company has already paid several fines in regards to the spill including a $7.8 billion settlement which was paid to individuals effected by the spill. The spill, which occurred on April 20, 2010 had a large effect on the communities tourism industry and commercial fishing businesses.
BP booked provisions to pay fines of $38.1 billion to fulfill its liability requirement. However, the company reported that the final costs of fines is not confirmed.
BP shares were up 77 cents, or 1.92% during Thursday morning trading. The stock is down 4.12% YTD.
The Bottom Line
Shares of BP plc ( BP ) have a 5.38% dividend yield, based on last night's closing stock price of $40.16. The stock has technical support in the $38 price area. If the shares can firm up, we see overhead resistance around the $43-$44 price levels.
BP plc( BP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.