BP expects $2-$3 billion charge as it near divestment target

LONDON (Reuters) – BP (L:) expects to hit its $10 billion disposal program by the end of 2019, almost one year ahead of schedule, which will however result in a $2-$3 billion charge in the third quarter.

As a result of the agreed divestments, BP expects to take a non-cash, non-operating, after-tax charge of $2-3 billion in its third quarter results, it said.

The London-based company said in a statement that it expects to agree on $10 billion of asset sales following the $5.6 billion sale of its Alaskan business to Hilcorp, announced this year, as well as divestments in its U.S. shale gas business.

BP announced the disposal program following its $10.25 billion acquisition of BHP’s shale business last year, its largest acquisition in three decades.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.