BP chairman Carl Henric-Svanberg today moved to clarify that last year’s dividend cut was made without undue pressure from US president Barack Obama.

Speaking at the shareholders’ annual general meeting (AGM), Henric-Svanberg said suspending the dividend and not paying the dividend that was in the pipeline was one of the hardest decisions the board has ever taken.

He explained, ‘I speak for all my colleagues on the board, when I say it was imperative to make the company safe and secure. Access to liquidity was becoming very expensive and we knew we needed to set aside funds for the Gulf of Mexico Trust Fund.’

Henric-Svanberg pacified shareholders by reminding them that community trust in the regions in which the company operates is paramount and the cut in dividend was, therefore, without question.

He added, ‘Trusting communities is a key part of our licence to operate. Let me take the opportunity to clarify that, despite rumours to the contrary, this was [a decision] taken by the board, it was not a topic that came up when I met with the US president.’

BP’s chairman said he was pleased to have been able to restore the dividend of 7 cents a share for the fourth quarter of 2010, which was announced in February.

He added, ‘We have been able to restore the dividend, albeit at a lower level and we will keep this under review. I am also pleased that a number of shareholders in this room have been taken up the scrip alternative that was approved at the AGM last year.

‘Many of you here did not felt hat you got enough information. I hope that the details we have given in the annual report and sustainability report go some way to address this.’

Henric-Svanberg said BP had been through an extraordinary crisis, which he described as ‘almost unprecedented in corporate history’.

He said, ‘I would want us all to remember those 11 men that died and those that were injured, their families and their friends [in the Gulf of Mexico disaster].

‘BP’s priority has always been and always will be to ensure that those who work for us, return home safely, every day.

‘Everyone at BP is shocked and saddened that these things happened. We will do all that we can to prevent such an accident happening again. BP has not, and will not, shy away from its responsibilities.

‘In the business of working with Hydrocarbons, there will always be risks. You, our shareholders, must be comfortable that we are taking the right risks on your behalf to safeguard your investments. So too must be the people in the countries in which we operate.’