While higher oil prices helped major oil companies like Exxon (NYSE:XOM), Marathon (NYSE:MRO), Chevron (NYSE:CVX) to solid quarters, although Chevron was weaker than expected, it wasn't able to help BP (NYSE:BP) overcome continuing charges related to expenses incurred from the Gulf of Mexico oil spill.
Still, it was good news for BP in that they generated a profit for the quarter soon after permanently plugging the Macondo oil well.
After taking another charge of $7.7 billion, it brings the total estimated costs of the BP oil spill to almost $40 billion, already exceeding expectations, and will surely rise more going forward.
A significant amount of the financial health of BP will relate to whether or not they're designated as being grossly negligent, which could cost them billions more if they are.
CEO Bob Dudley says he's confident that isn't going to happen.
Earnings per share for the latest quarter reached $0.59, a major improvement over the $5.42 they lost in the second quarter, but obviously falling short of the $1.60 generated last year in the same quarter before the spill.
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It is likely that Bod Dudley has voluntarily increased the provisions (the blame will go to the ex-boss) in order to improve the results for the coming quarters and take all the credit for himself. This is classical when there is a change of CEO.
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