Beleaguered oil giant BP reports major loss

Oil giant BP has today reported a massive loss of $16.9 billion in the three months to June as a result of the major oil spill in the Gulf of Mexico.

The company added that costs related to the spill will reach $32.2 billion (£20.8 billion).

Excluding oil spill and other non-operating costs, BP’s replacement cost profit was $4.98 billion.

The news comes just a day after it was announced that BP chief executive, Tony Hayward, will step down on 1 October.

Fifty-three-year-old Hayward has faced severe criticism for the way he has handled the major oil leak and made an insensitive comment in May after saying “I want my life back”.

His comments came after the explosion on the BP oil rig on 20 April took the lives of 11 people. The explosion led to thousands of barrels of oil leaking from the damaged well.

Just a few weeks after, Mr Hayward faced fresh criticism for attending a yachting event on the Isle of Wight.

He took time out from the ongoing Gulf of Mexico oil leak to go sailing with his son at the JP Morgan Asset Management Round The Island Race last month.

As a result, Mr Hayward, who has been with the company for 28 years, has come under increasing pressure to resign.

Mr Hayward will be replaced by American colleague Robert Dudley, who is in charge of the clean-up operation.

However, the company has confirmed that the oil leak has been capped and it has “reached a significant milestone“ and added that it is proposing to sell assets worth up to $30 billion over the next 18 months.