BP's dividend looks sustainable

BP reported a 63% drop in quarterly profits this week, but will concentrate on maintaining its dividend.

"The financial crisis has stuck a stopper in the oil sector," said Lex in the FT. This week BP reported a 63% drop in quarterly profits. A similarly sharp drop for Shell confirms that problems go right to the top of the industry.

Tony Hayward, BP's CEO, has been grappling with "the most difficult choice of his career", said David Wighton in The Times: he can either "cut the dividend and face the wrath of investors, or curb the group's spending plans at the expense of future growth".

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