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BP: Analyst sees BP dividend cut as 50% likely

June 9, 2010, 7:57 a.m. EDT

NEW YORK (MarketWatch) -- Societe Generale analysts Evgeny Solovyov and Aymeric de-Villaret said in a note to clients on Wednesday they see a 50% probability that BP PLC (BP 34.15, -0.53, -1.52%) will skip its upcoming quarterly dividend, which will be the subject of a directors meeting by the embattled oil giant on July 27.

"This is no longer a question of the strength of its balance sheet (which we think is strong enough) but of whether BP will be able to take the situation under sufficient control by the time it has to decide on the dividend...to come up with a story palatable for U.S. politicians and public opinion," the analysts said.

"BP has been recovering an average of 11,000 barrels a day in the past few days and it expects to increase the rate further. There is a reasonable chance therefore the mood will change by late July."




http://www.marketwatch.com/story/analyst-sees-bp-dividend-cut-as-50-likely-2010-06-09