Energy company BP reports 2nd quarter loss due to further write-off for Deepwater Horizon

MarketsAssociated Press

BP is reporting a second-quarter loss after the London-based oil company set aside another $10.8 billion to cover the cost of the Deepwater Horizon accident.

BP on Tuesday reported a net loss of $5.82 billion compared with net income of $3.37 billion a year earlier.

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Underlying replacement cost profit, which strips out one-time items and changes in the value of inventories, fell 64 percent to $1.31 billion as oil prices remained low.

The report is the first since BP announced a deal that will provide a further $18.7 billion to five U.S. states affected by the 2010 accident that killed 11 workers and spewed millions of gallons of crude into the Gulf of Mexico.

BP said the settlement would bring its full obligations $54.6 billion.