British Petroleum company has taken a 32 billion dollar hit in the last quarter accounts and reported a never before 17 billion dollars of loss. But there are many good things ahead for the company rather which is being currently ignored.
First the head is an American from September and not a British native.
The cap of the Gulf oil spill put ten days back is still working and there are no leakages reported till date. Also most of the oil spill seen on top of the water running for miles ten days back. Over 90% of these oil slicks are said to be not present now, and more baffling is the fact that none of these have hit the coasts as feared.
So that would mean lesser containment costs and lesser loss due to the oil contamination. That would in turn help the company to take back a decent portion of the 32 billion dollars provision made for potential future liabilities arising due to the oil spill.
The company also is owned by most of the pension funds in US and UK and it is only a question of time before US starts giving more projects to the company as a reward for their swift and sincere efforts to overcome the proble.
So expect the company shares to go past the all time high in the next three to four quarters, say experts. Any takers ?