BP swings to massive $17.2 billion loss, picks new CEO

CNN Money reports: BP posted a massive quarterly loss of $17.2 billion today due to costs stemming from the Gulf of Mexico oil disaster.

BP said it took a pretax charge of $32.2 billion in the quarter related to the oil spill, the worst in U.S. history. That charge includes the $20 billion fund the company agreed to set up in June to cover damages related to the spill.

The second-quarter results were the first look at company's financials since the BP-leased Deepwater Horizon oil rig exploded on April 20, killing 11 people.

They were a far cry from the year-ago period, when BP posted a net profit of $4.4 billion for the three months ending in June.

In a bid to make a fresh start and turnaround its reputation, the company announced a long-awaited change in leadership today, replacing CEO Tony Hayward with Robert Dudley, the American who has been overseeing the day-to-day Gulf spill response since June.

"I do not underestimate the nature of the task ahead," Dudley said. But he said the company's financial standing, along with its asset portfolio, would help put BP "on the road to recovery."

The transfer of power to Dudley was widely expected and a welcomed move.

"Dudley's reputation is that of a cool-headed troubleshooter. He's been in charge of the oil spill clean up for the last month or so, and he's been doing a good job," said Alex Morris, energy analyst at Raymond James. "The fact that he's an American will also help deflect some of the pressure BP has been getting out of Washington.