Hess Reports Wider Loss, Trims Spending
October 26 2016 - 9:23AM
Dow Jones News
By Anne Steele
Hess Corp. posted a deeper loss in the latest quarter, though
earnings slid less than expected as the company cut spending to
pace with the slowdown in the global energy market.
The prolonged swoon in energy prices, particularly in crude oil,
continues to damp the energy provider's results. Average crude
selling price fell 9.1% in the quarter to $41.50 a barrel from
$45.66 a year earlier.
Chief Executive John Hess said the company continues to take
steps to "materially reduce our spending." Total costs and expenses
during the quarter were 18% lower than a year ago.
Hess's exploration and production business posted a loss of $234
million in the quarter, compared with a loss of $188 million a year
ago. The segment's capital and exploratory expenditures nearly
halved to $435 million.
Oil and gas production fell 16% to 314,000 barrels of oil
equivalent a day.
In all for the September quarter, the company posted a loss of
$339 million, or $1.12 a share, wider than its year-earlier loss of
$279 million, or 98 cents a share. Excluding certain costs, the
company posted an adjusted per-share loss of $1.12, wider than
$1.03 loss a year ago.
Revenue dropped 29% to $1.2 billion.
Analysts polled by Thomson Reuters had expected a loss of $1.24
a share on $1.21 billion in revenue.
Hess's stock, down 13% over the past 12 months, edged 0.4% lower
in light premarket trading.
Write to Anne Steele at anne.steele@wsj.com.
(END) Dow Jones Newswires
October 26, 2016 09:08 ET (13:08 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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