BP exploring options on dividend – CEO in WSJ

June 11 (BestGrowthStock) – British energy giant BP (BP.L: ) (BP.N: ) is
weighing its options to cut or defer its second-quarter
dividend, as it faces growing public anger over its handling of
massive oil spill in the U.S. Gulf Coast, the Wall Street
Journal said, citing Chief Executive Tony Hayward’s interview.

“We are considering all options on the dividend. But no
decision has been made,” Hayward told the paper.

The company’s second quarter dividend is due to be announced
on July 27.

BP board could also consider paying all or part of dividend
in “scrip,” effectively an IOU to shareholders, the Journal
said.

BP is exploring ways to quell growing public anger in the
U.S. after government scientists doubled their estimate of the
amount of oil gushing out of its ruptured Gulf of Mexico well.

The news that the flow rate may be as high 40,000 barrels
(1.68 million gallons/6.36 million litres) per day came after
U.S. markets closed on Thursday. [ID:nN10265259]

House of Representatives Speaker Nancy Pelosi on Thursday
accused BP of a “lack of integrity” and urged the company to
suspend its dividend to ensure victims of the oil spill are
fully compensated. [ID:nN10264561]

Transocean’s Deepwater Horizon rig, under contract with BP
Plc (BP.L: ), exploded and caught fire on April 20 while it was
putting the finishing touches on a well about a mile (1.6 km)
beneath the ocean surface. It sank two days later.

The accident, which killed 11 people, has triggered a huge
oil spill that is threatening an environmental and economic
disaster along the U.S. Gulf Coast.
(Reporting by Sakthi Prasad in Bangalore; Editing by Hans
Peters)

BP exploring options on dividend – CEO in WSJ