BP tries to calm investors as shares fall a further 8%

Shares in BP (LON:BP., NYSE:BP) took a hammering again this morning in London trading, falling more than 8% in the first thirty minutes of trading, but were higher than pre-market trading which pointed to a fall of at least 10% from the start.

Such was the fall in BP’s share price, the company felt the need to state that it was ‘not aware of any reason which justifies this share price movement’ in a statement to the market this morning.

Trading in BP this morning was in reaction to a sharp fall in the company’s stock last night on the New York Stock Exchange (NYSE). In the United States, criticism of the company has been growing by the day, as the impact of the oil spill on the environment and business in and around the Gulf of Mexico continues to rise.

Barack Obama, perhaps not best known for his hard talking stance, has also ratcheted up the pressure on BP’s Chief Executive Tony Hayward, recently stating on American television that if he was in charge of BP, Hayward wouldn’t be in his job anymore.

Investors are also clearly concerned about the possibility that BP may be forced to suspend dividend payments as the potential cost of not only the spill, but litigation related to the spill is heading only one way.

“BP faces this situation as a strong company. In March, we indicated that the company's cash inflows and outflows were balanced at an oil price of around $60/barrel. This was before the costs of the incident,” BP stated this morning.

BP went on to note that is still generating ‘significant additional cashflow’.

http://www.proactiveinvestors.co.uk/companies/news/17486/bp-tries-to-calm-investors-as-shares-fall-a-further-8-17486.html