Hargreaves warns of BP dividend cuts over next two years

BP could have to slash dividend payments both this year and in 2011, warns Hargreaves Lansdown.

This would have a major impact on UK pensions funds as just about every scheme holds shares in the oil giant, says Hargreaves head of pensions Tom McPhail. Fears for the future of BP grew today as clean-up costs spiralled for its clean-up operation in the Gulf of Mexico. Since the Deepwater Horizon drilling rig exploded on 20 April, the oil company has lost around £44bn of its value. On the FTSE 100, BP shares were down 2.09% or 9p to 421.00p per share at around 1pm today, following a 15% dive yesterday. But Hargreaves Lansdown head of pensions Tom McPhail says while the immed...