Shares in BP (BP.) jumped up by roughly 2.5% on the London Stock Exchange on Monday after the oil giant announced over the weekend that it had reached a settlement for various claims related to the 2010 Gulf of Mexico oil spill.
Morningstar analyst Stephen Ellis said in his latest research report: “In our view, the largest positive of this settlement from the company’s perspective is likely to be the avoidance of publicly reliving the oil spill and all of the subsequent damage it caused, as would have occurred during the trial.”
However, he notes that “major considerations [related to the oil spill] are still unresolved ... this announcement therefore is not materially altering our outlook or valuation of BP’s shares.”
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