ConocoPhillips Loss Widens as Low Prices Weigh on Revenue
July 28 2016 - 9:09AM
Dow Jones News
By Tess Stynes
ConocoPhillips said its second-quarter loss widened as revenue
slumped amid the prolonged commodities downturn.
The Houston company also reduced is 2016 capital spending plan
by $200 million to a total of $5.5 billion.
ConocoPhillips, among a number of energy companies that have
been selling noncore businesses, said it completed $200 million of
divestitures during the quarter, bringing the total for the first
half of the year to $400 million.
"The price environment remains challenging, but our business is
running well, and we continue to beat our production, capital
expenditures and operating cost targets," Chief Executive Ryan
Lance said in prepared remarks.
In the latest quarter, Conoco said its average selling prices
fell 29% from a year earlier, reflecting declines across all
commodities.
Conoco reduced its debt by $800 million in the quarter, and the
company remains on track $1 billion of asset sale proceeds.
Over all, Conoco reported a loss of $1.07 billion, or 86 cents a
share, compared with a year-earlier loss of $179 million, or 15
cents a share, a year earlier. Excluding asset write-downs,
pension-related expenses, an asset sale gain and other items, the
adjusted per-share loss was 79 cents, compared with year-earlier
adjusted earnings of 7 cents.
Total revenue and other income decreased 36% to $5.58
billion.
Analysts expected per-share loss of 61 cents and revenue of
$6.62 billion, according to FactSet.
ConocoPhillips has continued to reduce its spending to improve
its cash flow and its balance sheet. The company has slashed its
quarterly dividend and last year completed roughly $2 billion in
noncore asset sales, part of its efforts to improve its
performance.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
July 28, 2016 08:54 ET (12:54 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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