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    BP Swings to Q2 Net Loss

    Company cites lower oil prices and writedowns for the earnings shortfall.

    LONDON -- BP plc lost $1.4 billion during its 2012 fiscal second quarter. Earnings declined significantly compared to the oil giant's 2011 Q2, when the company turned a net profit of $5.7 billion.

    BP attributed the loss in its latest quarter to lower oil prices and production, as well as the writedown of some assets, including shale gas in the United States.

    Revenues also declined during BP's latest quarter by 9 percent to $95 billion.

    "The effects of price movements have impacted our earnings in the quarter. Our extensive turnaround and maintenance program, which will continue into the third quarter, is also affecting some aspects of our near term results," BP said in a news release. "All of this will take time, but it is important investment that will enhance safety and reliability for the long term. As we deliver this major transformation, we are also committed to generating sustainable efficiencies in our operations."

    As for the future, BP faces several lawsuits, most of which are related to the Gulf of Mexico oil spill. The oil giant took a $847 million charge during the quarter related to the oil spill.

    "Rebuilding trust with our shareholders and other stakeholders is vitally important," the company said in a statement. "We are making progress against the critical strategic and operational targets we have set ourselves and are confident that this will deliver long-term, sustainable value."

    However, better times for BP are ahead, predicted CEO Bob Dudley. "Moving into 2013, we expect earnings momentum to build as we complete payments into the trust fund, as high-value production comes back on line, and as the impact of new projects ramps up," Dudley said.

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