BP says posts replacement cost of $2.25 billion

The British energy giant BP PLC reported a second-quarter loss due to a multibillion-dollar charge relating to its 2010 Gulf of Mexico rig blowout and oil spill.

BP said on Monday that its replacement cost loss–a number analogous to the net income that U.S. oil companies report–totaled $2.25 billion, compared with a loss of $6.27 billion a year earlier. The company took a pretax nonoperating charge of $5.2 billion in the quarter associated with Deepwater Horizon liabilities.

Stripping out one-off items such as proceeds from sales and impairment charges, the company’s underlying earnings of $720 million underperformed analysts’ consensus of $839 million.

“We are very pleased to have finally drawn a line under the material liabilities for Deepwater Horizon,” said Chief Executive Bob Dudley.

In the same period a year earlier, BP’s earnings included a $9.8 billion charge relating to the company’s agreement to settle U.S. federal and state claims over the 2010 Deepwater Horizon disaster.

Source: MarketWatch