BP shares rise as executives pledge billions to the clean up Go compare with our comparison table

BP shares rise as executives pledge billions to the clean up

17 June 2010 / by Lois Avery

BP shares have risen this morning despite their announcement that dividend payments will be suspended for shareholders.

The oil company has also pledged to spend £14billion on compensating those affected by the disaster in the Gulf of Mexico, which began more than two months ago when a rig exploded, killing 11 people and triggering the world’s biggest oil leak.

The move comes after politicians put pressure on BP executives to take drastic action in order to repair some of the damage.

The year's first dividend payment of $2.6billion was due on Monday, but has now been cancelled with all further payments to investors suspended until the end of the year.

BP has already spent £1billion on the clean up, including some compensation to workers, fishermen, and affected business.

But despite the blow to shareholders, the news has sent BP’s share price up by nine per cent and saw BP rise to the top of the FTSE 100 leader board.

In a statement BP chief executive Tony Hayward made a lengthy apology for the spill and detailed how they intended to clean up the mess both economically and environmentally.

“I give my pledge as leader of BP that we will not rest until we stop this well, mitigate the environmental impact of the spill and address economic claims in a responsible manner. No resource available to this company will be spared. We and the entire industry will learn from this terrible event and emerge from it stronger, smarter and safer.”

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